Question $6$

$3$ pts

You are given the following information: $r_{RF}=4\mathrm{.}10\%$; Market Risk Premium $=9\mathrm{.}35\%$; and $b=1\mathrm{.}30.$ Based on the CAPM approach, what is the cost of equity from retained earnings?

$10\mathrm{.}93\%$

$10\mathrm{.}60\%$

$10\mathrm{.}28\%$

$9\mathrm{.}97\%$

$16\mathrm{.}25\%$