fin 4

O’Brien Inc. has the following data: rRF = 4.00%; RPM = 6.00%; and b = 1.10. What is the firm’s cost of equity from retained earnings based on the CAPM? The cost of capital used in capital budgeting should reflect the average cost of the various sources of long-term funds a firm uses to acquire assets based upon the target capital structure. true r false
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