What is the appropriate cost for retained earnings

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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 firm’s beta is 1.43. The rate on six-month T-bills is 3.94%, and the return on the S&P 500 index is 6.77%. What is the appropriate cost for retained earnings in determining the firm’s cost of capital?

Reference no: EM131044950

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What is the appropriate cost for retained earnings : 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 1.43. The rate on six-month T-bills is 3.94%, and the return on the S&P 500 index is 6.77%. What is the a..

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