What is the appropriate cost for retained earnings in determining the firms cost of capital?
What techniques or tools can managers use to improve programmed and non-programmed decisions?
August 5, 2017Assess the roles, responsibilities, and options of state, regional and international actors in global peace operations
August 5, 2017What is the appropriate cost for retained earnings in determining the firms cost of capital?
#2 Homework #6F (Cost of equity financing)
The Yo-Yo Corporation tries to determine the appropriate cost for retained earnings to be used in capital budgeting analysis. The firms beta is 0.81. The rate on six-month T-bills is 2.11%, and the return on the S&P 500 index is 5.77%. What is the appropriate cost for retained earnings in determining the firms cost of capital?
