Explore BrainMass

Explore BrainMass

    CAPM Approach to Earnings Retained

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Assume that you are a consultant to Magee Inc. and you have been provided with the following data: rRF = 4%, RPM = 5% and b= 1.15. What is the cost of quity from retained earnings based on the CAPM approach?

    © BrainMass Inc. brainmass.com June 3, 2020, 10:55 pm ad1c9bdddf

    Solution Summary

    The solution examines CAPM's approach to earnings retained. The cost of quity is determined.