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P Daves Inc hired you as a consultant to help them estimate their cost of equity The yield on the firmâ€s bonds is 65 and Daves investment bankers believe that the cost of equity can be

P. Daves Inc. hired you as a consultant to help them estimate their cost of equity. The yield on the firm’s bonds is 6.5%, and Daves' investment bankers believe that the cost of equity can be estimated using a risk premium of 4.0%. What is an estimate of Daves' cost of equity from retained earnings?

A. 10.02%

B. 10.19%

C. 10.50%

D. 9.77%

E. 10.33%

 

Sep 08 2020 Read more Less More

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