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O'Halloren Inc. has the following data: the risk-free rate is 3.2%, the return on the market portfolio is 10.4% and the firm's beta is 1.

O'Halloren Inc. has the following data: the risk-free rate is 3.2%, the return on the market portfolio is 10.4% and the firm's beta is 1. What is the firm's cost of equity from retained earnings based on the CAPM? Enter your answer as a decimal with 4 places of precision.

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