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Atlas Corporation wishes to estimate its cost of retained earnings. The firm's beta is 1.7. The rate on 6-month T-bills is 4%, and the return
Atlas Corporation wishes to estimate its cost of retained earnings. The firm's beta is 1.7. The rate on 6-month T-bills is 4%, and the return on the S&P 500 index is 14%. What is the appropriate cost for retained earnings in determining the firm's cost of capital? Answer A)21.0% B)27.8% C)17.0% D)23.8%
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