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borteleto borteleto
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Posts: 2477
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6 years ago
GPS Inc. wishes to estimate its cost of retained earnings. The firm's beta is 1.3. The rate on 6-month T-bills is 2%, and the return on the S&P 500 index is 15%. What is the appropriate cost for retained earnings in determining the firm's cost of capital?
A) 17.0%
B) 19.5%
C) 18.9%
D) 22.1%
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guzmanguzman
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#1
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6 years ago
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borteleto Author
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#2
6 years ago
Thank you for being such a great website leader! Your answer's right.
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