Question
The beta for Tinley Park Corporation's common stock is 1.25. The annual stock market risk premium is 6.7%, and the risk-free interest rate is 2.8%
The beta for Tinley Park Corporation's common stock is 1.25. The annual stock market risk premium is 6.7%, and the risk-free interest rate is 2.8% per year. According to the security market line (SML) technique, what is the company's annual percentge cost of common equity (ke) financing?
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
