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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 = 4.70%; and b = 1.20. Based on the CAPM approach, what is the cost of equity from retained earnings? a. 8.80% b. 9.74% c. 9.62% d. 10.56% e. 10.00%

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