Retained earnings in determining the firms cost of capital

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Reference no: EM131450432

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 2.14. The rate on six-month T-bills is 2.24%, and the return on the S&P 500 index is 9.58%. What is the appropriate cost for retained earnings in determining the firm’s cost of capital?

Reference no: EM131450432

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