Business
Business, 07.11.2019 22:31, lekaje2375

Colt inc. is planning to use retained earnings to finance anticipated capital expenditures. the beta coefficient for colt's stock is 1.15, the risk-free rate of interest is 8.5 percent, and the market return is estimated at 12.4%. if a new issue of common stock was used in this model, the flotation costs would be 7%. using the capital asset pricing model (capm), the cost of using retained earnings to finance the capital expenditures is:

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Colt inc. is planning to use retained earnings to finance anticipated capital expenditures. the beta...

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