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Netflix common stock has a beta, b, of 1.6. The risk-free rate is 6%, and...

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Finance

Netflix common stock has a beta, b, of 1.6. The risk-free rate is 6%, and the market return is 11%.

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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