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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:

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 = 4.50%; and b = 1.40. Based on the CAPM approach, what is the cost of equity from retained earnings? a. 8.60% b. 10.24% c. 10.40% d. 10.00% e. 12.04%

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