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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: rRF

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 = 5.80%; and b = 1.05. Based on the CAPM approach, what is the cost of equity from retained earnings? a. 10.40% b. 10.19% c. 10.95% d. 9.90% e. 10.11%

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