Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital.You have been provided with the following data: rRF = 5.00%; RPM = 6.00%; and b = 0.90.Based on the CAPM approach,what is the cost of equity from retained earnings?
A) 9.49%
B) 9.79%
C) 10.09%
D) 10.40%
Correct Answer:
Verified
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