Finance Problem…need explanation!!

Finance Problem…need explanation!!

Suppose your firm is going to finance a new project 100% with retained earnings. Your boss claims that since the earnings are already being retained and that since no outside financing is required, the project should be evaluated at the risk-free rate of return.
(A) Is this appropriate?
(B) Are retain…

Suppose your firm is going to finance a new project 100% with retained earnings. Your boss claims that since the earnings are already being retained and that since no outside financing is required, the project should be evaluated at the risk-free rate of return.
(A) Is this appropriate?
(B) Are retain…

Finance Problem…need explanation!!

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