2. Concatti Corporation hired your consulting firm to help them estimate the cost of equity. The yield on the firm's bonds is 10.50%, and your firm's economists believe that the cost of equity can be...

2. Concatti Corporation hired your consulting firm to help them estimate the cost of equity.  The yield on the firm's bonds is 10.50%, and your firm's economists believe that the cost of equity can be estimated using a risk premium of 4.85% over a firm's own cost of debt.  What is an estimate of the firm's cost of equity from retained earnings?