Netflix common stock has a beta, b, of 1.3. The risk-free rate is 8%, and the market

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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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Principles of Managerial Finance

ISBN: 978-0134476315

15th edition

Authors: Chad J. Zutter, Scott B. Smart

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Posted Date: Jul 04, 2022 08:35 AM

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Netflix common stock has a beta, b, of 1.3. The risk-free rate is 8%, and the market

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Principles of Managerial Finance

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