HW 5: EOC 11 Problems Assignment: HW 5: EOC 11 Problems Questions Problem 11-06 (Cost of Equity: CAPM) 1. 3. 4. 5. 0 eBook Video Assignment Score: 60.00% Save Submit Assignment for Grading Question 2 of 5 Check My Work (No more tries available); Cost of Equity: CAPM Booher Book Stores has a beta of 0.7. The yield on a 3-month T-bill is 4%, and the yield on a 10-year T-bond is 7%. The market risk premium is 7.5%, and the return on an average stock in the market last year was 15%. What is the estimated cost of common equity using the CAPM? Round your answer to one decimal places. 20 % K A-Z 00 W