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Assume that you are a consultant to Thornton Inc., and you have been provided with the following data: rRF = 5.50%; RPM = 4.00%; and

Assume that you are a consultant to Thornton Inc., and you have been provided with the following data: rRF = 5.50%; RPM = 4.00%; and b = 1.2. What is the cost of equity from retained earnings based on the CAPM approach?

9.92%

10.49%

10.68%

10.11%

10.30%

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