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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 1.42. The rate on six-month T-bills is 2.71%, and the return on the S&P 500 index is 6.30%. 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. (Write the percentage sign in the "units" box).

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92268730

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