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Scanlon Inc.'s CFO hired you as a consultant to help estimate the cost of capital. You have been provided with the following data: rRF =

Scanlon Inc.'s CFO hired you as a consultant to help estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; market risk premium = 5.25%; and b = 1.30. Based on the capital asset pricing model (CAPM) approach, what is the cost of common equity capital ? Select one: a. 9.67% b. 9.97% c. 10.28% d. 10.93%

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