What is the appropriate cost for retained earnings

Reference no: EM13299091

My Corporation wishes to estimate its cost of retained earnings. The firm's beta is 1.3. The rate on 6-month T-bills is 2%, and the return on the S&P 500 index is 15%. What is the appropriate cost for retained earnings in determining the firm's cost of capital?

A. 17.0%

B. 19.5%

C. 18.9%

D. 22.1%

Reference no: EM13299091

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