Q421
Bond risk premium is 3% and bond yield is 10.2% then cost of common stock will be
A.
3.40%
B.
13.20%
AnswerC.
7.20%
D.
30.60%
Answer: Option B
Solution
Answer: Option B
Solution:
Common Stock = Bond yeild + Bond risk premium 10.2% + 3% = 13.20%.