O'Brien Inc. has the following data: r_RF = 5.00%; RP_M = 10.00%; and b = 0.65. What is the firm's cost of equity from retained earnings based on the CAPM?

a. 9.75%

b. 15.65%

c. 13.25%

d. 11.50%

e. 15.00%

Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: r_RF = 4.10%; RP_M = 5.60%; and b = 1.30. Based on the CAPM approach, what is the cost of equity from retained earnings?

a. 11.38%

b. 9.70%

c. 12.61%

d. 10.93%

e. 11.00%