Business, 27.11.2019 21:31 rodriguezangelinaado

The kennedy company is closely held and, therefore, cannot generate reliable inputs with which to use the capm method for estimating a company's cost of internal equity. kennedy's bonds yield 11.52%, and the firm's analysts estimate that the firm's risk premium on its stock over its bonds is 4.95%. based on the bond-yield-plus-risk-premium approach, kennedy's cost of internal equity is:
a. 19.76%
b. 16.47%
c. 18.12%
d. 15.65%

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