BA350 Financial Management: 10-6 (Cost of Equity: CAPM) Booher Book Stores has a beta of 0.8

BA350 Financial Management

10-6 Cost of Equity: CAPM
Booher Book Stores has a beta of 0.8. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 6%. The market risk premium is 5.5%, but the stock market return in the previous years was 15%.
What is the estimated cost of common equity using the CAPM?
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