Firm cost of equity from retained earnings

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Reference no: EM132065139

Sonya company needs to estimate the cost of equity. The yield on the firm's bonds is 5%, and your firm's economists believe that the cost of equity can be estimated using a risk premium of 4% over a firm's own cost of debt. What is an estimate of the firm's cost of equity from retained earnings?

Reference no: EM132065139

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