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Business, 20.04.2021 19:50 graymonky12

A firm is raising capital for a new project. Their oustanding bonds pay 14% interest annually. Investors currently pay $1124 for the 10-year bond. This firm plans to issue common stock. The additional risk permium on the firm's stock is 2.3%. Estimate the cost of equity capital

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A firm is raising capital for a new project. Their oustanding bonds pay 14% interest annually. Inves...

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