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The yield on a firm's bonds is 8.75%, and economists believe that the cost of equity can be estimated using a risk premium of 4.15%

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The yield on a firm's bonds is 8.75%, and economists believe that the cost of equity can be estimated using a risk premium of 4.15% over the firm's own cost of debt. What is an estimate of the firm's cost of equity from retained earnings? 12.90%11.90%14.74%13.17%12.63%

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