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O'Brien Inc. has the following data: R RF = 2.85%; RP M = 6.90%; and beta = 1.65. What is the firm's cost of equity

O'Brien Inc. has the following data: R_RF = 2.85%; RP_M = 6.90%; and beta = 1.65. What is the firm's cost of equity from retained earnings based on the CAPM?

9.20%

10.74%

14.24%

12.16%

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