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Cost of common stock equity--CAPM Netflix common stock has a beta, b, of 0.6. The...

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Finance

Cost of common stock equity--CAPM

Netflix common stock has a beta, b, of 0.6. The risk-free rate is 6 %, and the market return is 12%.

a. Determine the risk premium on Netflix common stock.

b. Determine the required return that Netflix common stock should provide.

c. Determine Netflix's cost of common stock equity using the CAPM.

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