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Business, 30.11.2019 01:31 april861

The jackson company is closely held and, therefore, cannot generate reliable inputs with which to use the capm method for estimating a company’s cost of internal equity. jackson’s bonds yield 10.28%, and the firm’s analysts estimate that the firm’s risk premium on its stock over its bonds is 4.95%. based on the bond-yield-plus-risk-premium approach, jackson’s cost of internal equity is:

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