#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 firm’s 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 firm’s cost of capital?

Is this part of your assignment? ORDER NOW