Home / Questions / P Daves Inc hired you as a consultant to help them estimate their cost of equity The yield...
P. Daves Inc. hired you as a consultant to help them estimate their cost of equity. The yield on the firmâs 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%
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