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XYZ Inc. hired you to help them estimate the cost of equity. The yield on the firm's bonds is 7%, and you believe that
XYZ Inc. hired you to help them estimate the cost of equity. The yield on the firm's bonds is 7%, and you believe that the cost of equity can be estimated using a risk premium of 3.45% over a firm's own cost of debt. What is an estimate of the firm's cost of equity? Oa. 15.16% Ob.12.85% Oc.9.45% 8.9.99% 10.45%
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
