Booher Book Stores has a beta of 1.1. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 6%. The m

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answerhappygod
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Booher Book Stores has a beta of 1.1. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 6%. The m

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Booher Book Stores has a beta of 1.1. The yield on a 3-monthT-bill is 3% and the yield on a 10-year T-bond is 6%. The marketrisk premium is 7.5%, and the return on an average stock in themarket last year was 15%. What is the estimated cost of commonequity using the CAPM? Round your answer to two decimal places.
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