Netflix Common Stock Has A Beta B Of 0 8 The Riskfree Rate Is 3% And The Market Return Is


Netflix common stock has a beta, b, of 0.8. The risk-free rate is 3%, and the market return is


Determine the risk premium on Netflix common stock.

Determine the required return that Netflix common stock should provide.

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