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Assume that you are a consultant to Thornton Inc., and you have been provided with the following data: risk free rate rRF = 5 .

Assume that you are a consultant to Thornton Inc., and you have been provided with the following data: risk free rate rRF

= 5.5 %

; market risk premium RPM

= 6.0 %

; and b

= 1.8 .

What is the cost of equity from retained earnings based on the CAPM approach?

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