J&M Corporation common stock has a beta, b, of 1.2. The risk-free rate is 6%, and the market return is 11%. Determine the risk premium on J&M common stock. Determine the required return that J&M common stock should provide.
Determine J&M's cost of common stock equity using the CAPM. The risk premium on J&M common stock is %. (Round to one decimal place)
The required return that J&M common stock should provide is %. (Round to one decimal place)
J&M's cost of common stock equity using the CAPM is %. (Round to one decimal place)