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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 = 5.25%; and b = 1.75. Based on the CAPM approach, what is the cost of equity from retained earnings?

a.

11.29%
b.

10.36%
c.

9.97%
d.

13.29%
e.

13.15%

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