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Assume that the risk-free interest rate is 6% and that a firm can issue bonds at an interest rate of 9%.?

Assume further that the difference between the average yield on stocks and the average yield on corporate bonds is4%. What is the risk premium associated with the firm's cost of equity capital?

 a.15% 

 b.13% 

 c.7% 

 d.4% 

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/08/05
Upvote (0) Views (8) Followers (6) Answers (6) Report Question
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Salvatore Augello
by Salvatore Augello , owner , A.S. Trade & Consult

it's C7% ________________________________________________________

Yaqoub Alomar
by Yaqoub Alomar , Civil Engineer , Al-Zubeir municipality

Thanks for the invitation,

I agree with the experts 

Ismael Hamad
by Ismael Hamad , Trainer , ANTONOIL DMCC , Lukoil project, WQ2

..................................... c.7%............................................................

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

7% is .............................right ...............answer........................

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

  1. The correct answer was: c.7%. 7% 

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