Heino Inc. hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: rRF = 5.0%; Market Risk Premium RPM = 5.0%; and b = 1.1. Based on the CAPM approach, what is the cost of equity from retained earnings?

Select one:

a. 10.50%

b. 10.71%

c. 10.88%

d. 11.03%

e. 11.14%