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3. COST OF EQUITY CAPITAL (1) The Optical Instruments Company can sell bonds at an interest rate of 7%. The interest rat
Posted: Wed Mar 09, 2022 8:42 am
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- 3 Cost Of Equity Capital 1 The Optical Instruments Company Can Sell Bonds At An Interest Rate Of 7 The Interest Rat 1 (11.31 KiB) Viewed 37 times
3. COST OF EQUITY CAPITAL (1) The Optical Instruments
Company can sell bonds at an interest rate of 7%. The interest rate on government securities is 3% and the historical rate of return on equities is considered to be 4% over the rate of return on fixed investments. Calculate the cost of equity for this firm.