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Evermore corporation is computing its cost of using retained earnings for long term financing under the CAPM model. The risk free rate of return is

Evermore corporation is computing its cost of using retained earnings for long term financing under the CAPM model. The risk free rate of return is 2%. And the market rate of return is 9%. Evernote's stock fluctuated 3% at the same time the market fluctuated 5%. 


Calculate the cost of retained earnings computed using the CAPM.

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