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Ruston Timber Company hired your consulting firm to help them estimate the cost of equity. The yield on the firm's bonds is 12%, and your

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Ruston Timber Company hired your consulting firm to help them estimate the cost of equity. The yield on the firm's bonds is 12%, and your firm's economists believe that the cost of equity can be estimated using a risk premium of 3.85% over a firm's own cost of debt. What is an estimate of the firm's cost of equity? a. 8.15% Ob. 15.85% c. 12.52% Od. 13.31%

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