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The beta for Namibia Novelty Corporation's common stock is 1.05. The annual stock market risk premium is 7.1%, and the risk-free interest rate is 2.2%
The beta for Namibia Novelty Corporation's common stock is 1.05. The annual stock market risk premium is 7.1%, and the risk-free interest rate is 2.2% per year. According to the security market line (SML) technique, what is the company's annual percentage cost of common equity (ke) financing? (Answers given are rounded to two decimal places.) O A. 9.66% B. 7,46% O C.7.35% O D.9.41% E. 7.61%
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Entrepreneurial Finance And Accounting For High-Tech Companies
Authors: Frank J Fabozzi
1st Edition
0262336901, 9780262336901
