c. If the firms bonds earn a return of 12%, then what would be your estimate of

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c. If the firm’s bonds earn a return of 12%, then what would be your estimate of rs using the over-own-bond-yield-plus-judgmental-risk-premium approach?

(Hint: Use the midpoint of the risk premium range.)

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Financial Management Theory And Practice

ISBN: 9781439078105

13th Edition

Authors: Eugene F. Brigham, Michael C. Ehrhardt

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