Booher Book Stores has a beta of 0 . 5 . The yield on a 3 -

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Booher Book Stores has a beta of

0.5 .

The yield on a

3 -

month T

-

bill is

5 %

and the yield on a

10 -

year T

-

bond is

6 % .

The market risk premium is

7.5 %,

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.

Posted Date: May 18, 2024 05:06 PM

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