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4) Assume that you have been provided with the following firm data: risk-free rate = 2%, market risk premium = 6.55%, and beta = 1.05.

4) Assume that you have been provided with the following firm data: risk-free rate = 2%, market risk premium = 6.55%, and beta = 1.05. What is the cost of equity from retained earnings based on the CAPM approach (round your answer to two decimal places)?

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