A. Butcher Timber Company hired your consulting firm to help them estimate the cost of equity. The yield on the firm's bonds is 8.75%, 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 from retained earnings? a. 12.60% b. 13.10% OC 13.63% O d. 14.17% O e. 14.74% QUESTION 43 Teall Development Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D. = $1.45, P, = $22.50; and g = 6.50% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? a. 11.10% 6.11.68% c. 12.30% d. 12.949 e 13.596