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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: r

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: rRF = 4.10%; RPM = 4.60%; and b = 1.25. Based on the CAPM approach, what is the cost of equity from retained earnings?

a. 9.73%
b. 9.95%
c. 9.85%
d. 8.70%
e. 10.88%

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