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If the market risk premium is 13 percent and the firms bonds earn a return of 9 percent, based on the bond-yield-plus-risk-premium approach, what will

If the market risk premium is 13 percent and the firms bonds earn a return of 9 percent, based on the bond-yield-plus-risk-premium approach, what will be the firms cost of retained earnings? Risk premium on the firms stock over its own bond is 4 percent

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