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Q.5 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:TRF

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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:TRF = 4.10%; RPM = 5.25%; and b=0.60. Based on the CAPM approach, what is the cost of equity from retained earnings? 6.38% 6.67% 5.51% 7.18% 7.25%

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