Question
A quick approximation of the typical firm's cost of equity may be calculated by a) adding a 5 percent risk premium to the firm's before-tax
A quick approximation of the typical firm's cost of equity may be calculated by
a) adding a 5 percent risk premium to the firm's before-tax cost of debt.
b) adding a 5 percent risk premium to the firm's after-tax cost of debt.
c) subtracting a 5 percent risk discount from the firm's before-tax cost of debt.
d) subtracting a 5 percent risk discount from the firm's after-tax cost of debt.
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
