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A firm pays its bondholders a 12% return. Its cost of retained earnings may be estimated by: Select one: O a adding one to three

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A firm pays its bondholders a 12% return. Its cost of retained earnings may be estimated by: Select one: O a adding one to three percentage points to the 12% pretax cost of debt. O b. adding three to five percentage points to the 12% pretax cost of debt. . multiplying the firm's beta by three to five percentage points and adding it to the 12% pretax cost of debt. d. None of the above

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