Booher Book Stores has a beta of 0.4. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 8%. The market risk premium is 7.5%, and the return on an average stock in the market last year was 13%. What is the estimated cost of common equity using the CAPM?

Which of these statements is correct? the system of linear equations 6x - 5y = 8 and 12x - 10y = 16 has no solution. the system of linear equations 7x + 2y = 6 and 14x + 4y = 16 has an infinite number of solutions. the system of linear equations 8x - 3y = 10 and 16x - 6y = 22 has no solution. the system of linear equations 9x + 6y = 14 and 18x + 12y = 26 has an infinite number of solutions.