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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: risk-free

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: risk-free rate = 2.40%; required return on the market = 12.25%; and beta = 1.20. Based on the CAPM approach, what is the cost of equity from retained earnings?

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