Bond-yield-plus-risk-premium method

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Reference no: EM13925353

If the before tax RD equals 8% and the firms’ tax rate equals 25%, how much is the Rre using the Bond-Yield-plus-Risk-Premium method?

a. 6%

b. 9%

c. 10%

d. 12%

e. Cannot tell from the information provided.

Reference no: EM13925353

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