Internal common stock: Jones Industries has a beta of 1.39. Therisk-free rate as

Internal common stock: Jones Industries has a beta of 1.39. Therisk-free rate as measured by the rate on short-term US Treasurybill is 3 percent and the expected return on the overall market is12 percent.Jones Total Assets $2000000 Long- &short-term debt $600000 Common internal stock equity $400000 Newcommon stock equity $1000000 Total liabilities & equity$2000000Determine the expected rate of return on Joness stock (cost ofequity).