t: Chpater 11 Assignment Score: 27.27% Save Submit Assignment for Grading Problem 11-06 (Cost of Equity: CAPM) Question 4 of 11 Check My Work eBook Problem Walk-Through Cost of Equity: CAPM Booher Book Stores has a beta of 0.4. The yield on a 3-month T-bill is 4.5% and the yield on a 10-year T-bond is 6%. The market risk premium is 6%, and the return on an average stock in the market last year was 14%. What is the estimated cost of common equity using the CAPM? Round your answer to two decimal places. Check e Work 823 PM 03/25/20