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The Yo-Yo Corporation tries to determine the appropriate cost for retained earnings to be used in capital budgeting analysis. The firms beta is 1.81. The

The Yo-Yo Corporation tries to determine the appropriate cost for retained earnings to be used in capital budgeting analysis. The firms beta is 1.81. The rate on six-month T-bills is 3.65%, and the return on the S&P 500 index is 7.41%. What is the appropriate cost for retained earnings in determining the firms cost of capital?

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