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CVS Health's beta from ValueLine is 0.9. The Treasury bond rate is 1% and the market risk premium is 8%. CVS expected dividend is $2.00

CVS Health's beta from ValueLine is 0.9. The Treasury bond rate is 1% and the market risk premium is 8%. CVS expected dividend is $2.00 per share with an expected constant growth rate of 6.5%, and CVS's recent stock price is $68 per share.

What is CVS Health's CAPM cost of retained earnings estimate?

	A.	9.4%
	B.	7.3%
	C.	9.1%
	D.	8.2%

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