The bond yield is 12% and the bond risk premium is 4.5% then the cost of common

Question

The bond yield is 12% and the bond risk premium is 4.5% then the cost of common stock would be

Options:

A . 0.375

B . 0.075

C . 0.155

D . 2.67 times

Answer: Option C
Answer: (c).0.155

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