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 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.

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