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Violet Sky Technology has issued bonds, common stock, and preferred stock. The YTM for the...

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Finance

Violet Sky Technology has issued bonds, common stock, and preferred stock. The YTM for the bonds is 7.5 percent and the expected annual return for the preferred stock is 12.2 percent. Which of the following assertions about the expected annual return for the common stock issued by Violet Sky Technology is most likely to be true?

A) The expected annual return for the common stock is 4.6 percent

B) The expected annual return for the common stock is 7.5 percent

C) The expected annual return for the common stock is 10.3 percent

D) The expected annual return for the common stock is 12.2 percent

E) The expected annual return for the common stock is 14.2 percent

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