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1. Spartan Inc. has the following data: risk-free rate = 4.00%, market risk premium = 6%, and beta = 1.25. What is the firm's cost

1. Spartan Inc. has the following data: risk-free rate = 4.00%, market risk premium = 6%, and beta = 1.25. What is the firm's cost of equity from retained earnings based on the CAPM?

10.25%

11.50%

11.78%

12.21%

12.40%

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