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QUESTION 15 Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following

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QUESTION 15 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: 1 RF = 4.10%; RPM=5.25%, and b = 1.70. Based on the CAPM approach, what is the cost of equity from retained earnings? O a 10.03% Ob.15.24% O c. 13.03% d. 13.94% O e 12.63% QUESTION 16 O'Brien Inc. has the following data: RF = 5.00% RP M= 6.00%; and b = 1.50. What is the firm's cost of equity from retained earnings based on the CAPM? O a. 10.92% b. 14.00% O c. 15.54% d. 14.98% e. 12.46%

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