Question
The Yo-Yo Corporation tries to determine the appropriate cost for retained earnings to be used in capital budgeting analysis. The firm's beta is 0.66. The
The Yo-Yo Corporation tries to determine the appropriate cost for retained earnings to be used in capital budgeting analysis. The firm's beta is 0.66. The rate on six-month T-bills is 3.07%, and the return on the S&P 500 index is 7.60%. What is the appropriate cost for retained earnings in determining the firm's cost of capital?
Round the answers to two decimal places in percentage form.
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Matlab An Introduction with Applications
Authors: Amos Gilat
5th edition
1118629868, 978-1118801802, 1118801806, 978-1118629864
