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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