The US government T-bill has a yield of 3.12%, the Wilshire 5000 is expected to yield 9.25%, and a stock's beta is 1.4.  If inflations is expected to increase by 1.78 percentage points next year, but everything else remains the same, what will the new cost of retained earning be?

Answer rating: 100% (QA)

The cost of retained earnings Re can be calculated using the Gordon Gr... View the full answer