Booher Book Stores has a beta of 1.2. The yield on a 3-month T-bill is 3%...

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Booher Book Stores has a beta of 1.2. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 7%. The market risk premlum is 4.5%, and the return on an average stock in the market last year was 13%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places. % Booher Book Stores has a beta of 1.2. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 7%. The market risk premlum is 4.5%, and the return on an average stock in the market last year was 13%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places. %

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Heres how to calculate the estimated cost of common equity for Booher Book Stores using the CAPM 1 C... View the full answer