(Answered) Yezz corporation tries to determine the appropriate cost

Finance

YEZZ Corporation tries to determine the appropriate cost for retained earnings to be used in capital budgeting analysis. The firm's beta is 1.40. The rate on six-month T-bills is 2.23%, and the return on the S&P 500 index is 7.60%.

What is the appropriate cost for retained earnings in determining the firm's cost of capital?

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