Question: Use CAPM to determine the required return on the common stock of Leo's restaurants given: Treasury rate: 3% Beta of Leo's stock: 1.10 dividend yield

Use CAPM to determine the required return on the common stock of Leo's restaurants given:

Treasury rate: 3%

Beta of Leo's stock: 1.10

dividend yield on Leo's stock: 1%

expected return on the stock market: 10%

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