d. 13.54% 71. Donoho Corp. issued 20-year, $1,000 par bonds eight years ago with a 10% coupon paying semiannually that are now selling for $1,152.47. Estimate the cost of retained earnings assuming investors generally demand a 5% risk premium on equity over the cost of debt. a. b. 9% C. d. e. 8% 11% 13% 15% 72. A firm's preferred stock is selling at $83 and pays a 9.5% annual dividend on a $100 par value, what is the cost of preferred if flotation costs are 12%? a. b. C. d. 11.45% 10.64% 13.01% 10.79%