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(ii) Cost of Equity of Nextel if investors are globally diversified = 0.0308 + 0.77 (0.05) = 0.0693 Estimate the cost of capital of NII
(ii) Cost of Equity of Nextel if investors are globally diversified = 0.0308 + 0.77 (0.05) = 0.0693
Estimate the cost of capital of NII Holdings assuming investors are globally diversified. Use your answer to Question 4 part ii as your estimate of the cost of equity.
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