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You are in the process of estimating the fundamental value of equity for firm X. When estimating the cost of equity, which of the following

You are in the process of estimating the fundamental value of equity for firm X. When estimating the cost of equity, which of the following would you use for the risk-free rate (RF) and the market risk premium (MRP):

MRP: E(RM-RF)
Estimation period RF = 3m T.Bills RF = 10Y T.Bonds
1972-2021 8.04% 5.47%
2012-2021 16.47% 14.39%
Current RF 2.00% 4.00%
A.

MRP = 14.39% and RF = 4%

B.

MRP = 5.47% and RF = 4%

C.

MRP = 8.04% and RF = 4%

D.

MRP = 5.47% and RF = 2%

E.

MRP = 14.39% and RF = 2%

F.

MRP = 16.47% and RF = 2%

G.

MRP = 16.47% and RF = 4%

H.

MRP = 8.04% and RF = 2%

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