What is the appropriate cost for retained earnings

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Reference no: EM132064840

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 0.63. The rate on six-month T-bills is 3.93%, and the return on the S&P 500 index is 6.88%.

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: EM132064840

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