Q394
Cost of common stock is 14% and bond risk premium is 9% then bond yield will be
A.
1.56%
B.
5.00%
AnswerC.
23.00%
D.
64.28%
Answer: Option B
Solution
Answer: Option B
Solution:
Bond yield = Cost of common stock - Bond risk premium = 14% - 9% = 5.00%