The cost of raising capital through retained earnings is the cost of raising capital through issuing new common stock. The current risk-free rate of return (r_RF) is 4.67%, while the market risk premium is 6.63%. the Jefferson Company has a beta of 0.92. Using the Capital Asset Pricing Model (CAPM) approach, Jefferson's cost of equity is

Required: 1-a. the marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. calculate the increase or decrease in net operating income. 1-b. should the advertising budget be increased ? yes no hintsreferencesebook & resources hint #1 check my work 8.value: 1.00 pointsrequired information 2-a. refer to the original data. management is considering using higher-quality components that would increase the variable expense by $2 per unit. the marketing manager believes that the higher-quality product would increase sales by 10% per month. calculate the change in total contribution margin. 2-b. should the higher-quality components be used? yes no