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CAN YOU PLEASE HELP ME WITH THIS The common stock of Anthony Steel has a beta of 0.5. The risk-free rate is 3.6 percent and
CAN YOU PLEASE HELP ME WITH THIS
The common stock of Anthony Steel has a beta of 0.5. The risk-free rate is 3.6 percent and the market risk premium (rM-rRF) is 4.4 percent. Assume the firm will be able to use retained earnings to fund the equity portion of its capital budget. What is the company's cost of retained earnings, rs?
6.40%
5.50%
6.10%
5.80%
5.20%
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