Retained earnings to be used in capital budgeting analysis

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Reference no: EM131538464

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 1.59. The rate on six-month T-bills is 3.19%, and the return on the S&P 500 index is 9.51%. 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.

Reference no: EM131538464

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