Calculating the cost of retained earnings for the firm


Allegheny Valley Power Company common stock has a beta of 0.80. If the current risk-free rate is 6.5% and the expected return on the stock market as a whole is 16%, determine the cost of retained earnings for the firm (using the CAPM).

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Finance Basics: Calculating the cost of retained earnings for the firm
Reference No:- TGS053826

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