Cost of common stock equity- CAPM JM corporations common stock has a beta, b, of 0.9. the risk free rate is 7% and the market return is 14%. a. The

Cost of common stock equity- CAPM J&M corporations common stock has a beta, b, of 0.9. the risk free rate is 7% and the market return is 14%.

a. The risk premium on J&M common stock is what %? (round to one decimal place)

b. The required return that J&M common stock should provide is what %? (round to one decimal place)

c. J&M’s cost of common stock equity using the CAPM is what %? (round to one decimal place)