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 March 21, 2019, 6:24 pm ad1c9bdddf

Solution Summary

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