QUESTIONS Cost of Equity Capital A firm is raising capital for a new project. Their standing bonds pay 14% interest annually Investors currently pay $1124 for the 10-year bond. This firm plans to issue common stock. The additional risk permum on the firm's stock is 2.3% Estimate the cost of equity capital? Take a minute and write this information in your own words? What formation is provided and what are you trying to find? . Which intermediate eps are needed (do you need the yield to maturity on the bonds) . Which of the three cost of equity methods should be used based on the information provided Solve for the cost of equity 421 & None of the other choices 2