Question
Company C recently issued bonds which have a YTM of 12% and a report from management associated a risk premium of 4% with the
Company C recently issued bonds which have a YTM of 12% and a report from management associated a risk premium of 4% with the company's equity. What is the company's cost of equity? Estimate its component cost of equity and choose the most correct option below. a. 4% b. 8% C. 12% d. 16%
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077511388, 78034779, 9780077511340, 77511387, 9780078034770, 77511344, 978-0077861759
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