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Assume that you are a consultant to Thornton Inc., and you have been provided with the following data: rRF = 4.00%; RPM = 6.00%; and

Assume that you are a consultant to Thornton Inc., and you have been provided with the following data: rRF = 4.00%; RPM = 6.00%; and b = 0.9. What is the cost of equity from retained earnings based on the CAPM approach? Select the correct answer.

9.17%

9.63%

8.94%

9.86%

9.40%

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