CAPM Netflix common stock has a beta, B, of 0.8. The risk-free rate is 3%, and the

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CAPM Netflix common stock has a beta, B, of 0.8.

The risk-free rate is 3%, and the market return is 10%.

a. Determine the risk premium on Netflix common stock.

b. Determine the required return that Netflix common stock should provide.

c. Determine Nefflix's cost of common stock equity using the CAPM.

Related Book For answer-question

Principles of Managerial Finance

ISBN: 978-0134476315

15th edition

Authors: Chad J. Zutter, Scott B. Smart

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Posted Date: Jun 19, 2019 02:02 AM

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CAPM Netflix common stock has a beta, B, of 0.8. The risk-free rate is 3%, and the

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Principles of Managerial Finance

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