Risk premium between the company bonds and stocks

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Reference no: EM131551506

Pollo Inc.'s 5.57% bonds have a YTM of 12.31%. The estimated risk premium between the company's bonds and stocks is 4%. Pollo's cost of common equity, Re, is ____%. Round your final answer to 2 decimal places (example: enter 12.34 for 12.34%), but do not round any intermediate work in the process.

Reference no: EM131551506

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