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Question
According to the bond-yield-plus-risk-premium approach, a firm's cost of retained earnings, rs, can be estimated by adding a risk premium of 3 to 5 percentage points to:
a. its cost of preferred stock, rps.
b. the risk free rate of return.
c. its before-tax interest cost of debt, rs.
d. its return on equity (ROE).
e. its after-tax interest cost of debt, rsT.
Answer
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Related questions
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Q:
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Q:
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Q:
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