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Now, use the Capital Asset Pricing Model (CAPM) to estimate the firm 's cost of retained earnings, rs. The risk rate, , is 6.0% and

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Now, use the Capital Asset Pricing Model (CAPM) to estimate the firm 's cost of retained earnings, rs. The risk rate, , is 6.0% and the market risk premium, RPM, Is 5.0%. A 60- month regression of the firm's stock returned market returns shows that the firm's beta is 1.60. According to the CAPM, what is the firm, cost of retained earnings, r_s

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