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Quark is currently estimating its cost of equity. The firm's bonds currently have a YTM of 6.00%, and you believe that the firm's cost of
Quark is currently estimating its cost of equity. The firm's bonds currently have a YTM of 6.00%, and you believe that the firm's cost of equity can be estimated using bond yield plus risk premium approach using a risk premium of 3.85%. What is an estimate of the firm's cost of equity from retained earnings? O a. 10.05% O b. 11.92% O c. 10.44% O d. 9.85% Oe. None of the above. There is no cost associated with retained earnings because the company generates the funds internally
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