You also remember that your old college textbook stated that analysts often assume that investors’ required return on a given company’s stock exceeds the required return on the company’s bonds by some 2 to 6 percentage points. Maria also suggests that you consider data provided by Ibbotson Associates, which reports that the historical risk premium on common stocks over corporate bonds has averaged about 6.4 percent over the years for which data are available. This number is somewhat above the top of the textbook range.