J&M Corporation common stock has a? beta, b?, of 1.6. The? risk-free rate is 5%?, and the market return is 9?%.
a. Determine the risk premium on? J&M common stock. (Round to one decimal place)
b. Determine the required return that? J&M common stock should provide.
c. Determine? J&M's cost of common stock equity using the CAPM.