Question: You open a small clothing store using your own funds to source equity capital. You are trying to estimate an appropriate cost of capital and

You open a small clothing store using your own funds to source equity capital. You are trying to estimate an appropriate cost of capital and find the following information: 2.596 A. 1-year T-bond: B. Mortgage Rates: 5.096 C. S&P 500 E[ret]: 9.596 D. Retail Industry E[ret]: 13.096 Which is the best range estimate for you business's cost of capital? 0 1396 - 16% O 8.09 - 11.096 0 3.0% -6.0% O 1096 - 1396

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