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Assume that the risk free rate is 5%, market risk premium is 8%, and the firms stock beta is 1.5. Using the CAPM Cost of

Assume that the risk free rate is 5%, market risk premium is 8%, and the firms stock beta is 1.5. Using the CAPM Cost of Equity Model, what is the firms cost of retained earnings?

10.2%

13%

17%

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