Question 14 4 pts Mike is charged with the task of estimating cost of capital. He has the following information: (1) rd yield on the firm's bonds = 7.00% and the risk premium over its own debt cost = 4.00%. (2) r;= 5.00%,rm = 11.00%, and beta = 1.65. (3) D = $1.20, Po = $35.00, and g = 8.00% (constant). Mike needs to estimate the cost of equity based on the three commonly used methods and then find the difference between the highest value and lowest value. The difference is _%. If your answer is 12.34% then input 12.34 in the answer box. Previous Next