Netflix common stock has a beta, b, of 1.3. The risk-free rate is 8%, and the market
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Question:
Netflix common stock has a beta, b, of 1.3. The risk-free rate is 8%, and the market return is 14%.
a. Determine the risk premium on Netflix common stock.
b. Determine the required return that Netflix common stock should provide.
c. Determine Netflix's cost of common stock equity using the CAPM.
Related Book For
Principles of Managerial Finance
ISBN: 978-0134476315
15th edition
Authors: Chad J. Zutter, Scott B. Smart
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