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Question 1 Not yet answered Marked out of 2.00 P Flag question Assume that the risk-free interest rate is 6% and that a firm can
Question 1 Not yet answered Marked out of 2.00 P Flag question Assume that the risk-free interest rate is 6% and that a firm can issue bonds at an interest rate of 9%. Assume further that the difference between the average yield on stocks and the average yield on corporate bonds is 4%. What is the risk premium associated with the firm's cost of equity capital? Select one: O a. 4% O b. 13% O c. 15% O d. 7% O e. None of the options
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