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Amazon has a beta of 0.9. The risk-free rate is 2.4% and the expected return on the S&P500 is 7%. What is Amazon's cost of

Amazon has a beta of 0.9. The risk-free rate is 2.4% and the expected return on the S&P500 is 7%.

What is Amazon's cost of equity from retained earnings?

Now assume that the expected market risk premium is 7%. What is Amazon's cost of equity from retained earnings, according to the CAPM?

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