The market yield on Spice Grills’ bonds is 15%, and the firm’s margina
The market yield on Spice Grills’ bonds is 15%, and the firm’s marginal tax rate is 33%. What is their shareholders’ required return if the equity risk premium is 4%?
A) 15%
B) 11%
C) 14%
D) 19%
E) 12%
ANSWER
D
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