The cost of raising copital through retained earnings is Iess than the cost of raising capital through issuing new common stock. The cost of equity using the CAPM appronch The yield on a three-month T-bill is 2.74\%, and the yield on a 10 -year Tobond is 3.86%, the market riek premium is 5.75%. The Burris Company has a beta of 0.78, Uking the Capital Asset Pricing Moded (CAFM) approach, burris's coct of equity is The cost of equity using the bond yield plus risk premium approach The Kennedy Company is desely held and, therefore, cannot generate reliable inguts with which to use the CAPM method for estimating a compamy's cost of internal equity, Kennedy's bonds yield 11.57*, and the firmis analyests estimate that the fixm's rick premieum on its stock over its bonds is 3.55\%. based on the bond-yield-plus-riek-premium epproach, Kennedy's cost of intemal equity is? 14.32% 16.58% 15.073