Question
When considering cost of equity from bond plus mark up, what is the formula for risk markup? I believe it is the cost of debt
When considering cost of equity from bond plus mark up, what is the formula for risk markup? I believe it is the cost of debt as a percentage plus the cost of annual stock as a percentage. However, I am not clear on how to calculate the cost of annual stock as a percentage.
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
