Firm’s cost of capital
$1.00
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 t6& The rate on six-month T-buts is 169%, and the return on the S&P 500 index is 5.29%. 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).
