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A company's does not have enough information to use the CAPM method for calculating cost of equity. Their bonds yield 6.25%, and the company's analysts

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A company's does not have enough information to use the CAPM method for calculating cost of equity. Their bonds yield 6.25%, and the company's analysts estimate that the risk premium is 2.65%. Based on the bond-yield-plus-risk-premium approach, the company's cost of internal equity is: 6.25% 3.60% 8.90% 0 2.65%

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