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72 73 e. Now calculate the cost of common equity from retained earnings, using the CAPM method, 74 where the market risk premium is 6%,

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72 73 e. Now calculate the cost of common equity from retained earnings, using the CAPM method, 74 where the market risk premium is 6%, the risk-free rate is 3.1%, and Skye's beta is 1.50. 75 76 Skye's beta 1.50 77 Market risk premium, r-ro 6.0% 78 Risk-free rate, Top 3.1% 79 B0 81 82 83

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