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QUESTION
A quick approximation of the typical firm's cost of equity may be calculated by a) adding a 5 percent risk premium to the firm's before-tax cost of...
A quick approximation of the typical firm's cost of equity may be calculated by
a) adding a 5 percent risk premium to the firm's before-tax cost of debt. b) adding a 5 percent risk premium to the firm's after-tax cost of debt. c) subtracting a 5 percent risk discount from the firm's before-tax cost of debt.
d) subtracting a 5 percent risk discount from the firm's after-tax cost of debt.
