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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.

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