Question: The bond-yield-plus approach to estimating the cost of common equity involves adding a risk premium of 3% to 5% to the firms a. Cost of

The bond-yield-plus approach to estimating the cost of common equity involves adding a risk premium of 3% to 5% to the firm’s

a. Cost of short-term debt.

b. Cost of long-term debt.

c. Return on assets.

d. Return on equity.

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