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Pollo Inc.'s 4.20% bonds have a YTM of 7.37%. The estimated risk premium between the company's bonds and stocks is 5%. Pollo's cost of common

Pollo Inc.'s 4.20% bonds have a YTM of 7.37%. The estimated risk premium between the company's bonds and stocks is 5%. Pollo's cost of common equity, Re, is ____%.

Margin of error for correct responses: +/- .03(%)

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