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18. 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:

18. 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 = 4.10%; RPM = 5.60%; and b = 0.95. Based on the CAPM approach, what is the cost of equity from retained earnings?

a. 9.42%
b. 10.65%
c. 9.50%
d. 9.70%
e. 9.22%

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