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Business, 27.11.2019 21:31 lilmomma4561p83k3b

Your consultant firm has been hired by eco brothers inc. to them estimate the cost of common equity. the yield on the firm's bonds is 8.75%, and your firm's economists believe that the cost of common can be estimated using a risk premium of 3.85% over a firm's own cost of debt. what is an estimate of the firm's cost of common from reinvested earnings? a. 12.60%b. 13.10%c. 13.63%d. 14.17%e. 14.74%

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