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KCEP Co. hired your consulting firm to help them estimate the cost of equity. The yield on the firm's bonds is 5.75%, and your firm's
KCEP Co. hired your consulting firm to help them estimate the cost of equity. The yield on the firm's bonds is 5.75%, and your firm's economists believe that the cost of equity can be estimated using a risk premium of 3.25% over a firm's own cost of debt. What is an estimate of the firm's cost of equity from retained earnings?
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