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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

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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 = 4.10\%; RPM=4.60%; and b=1.40. Based on the CAPM approach, what is the cost of equity from retained earnings? a. 8.70% b. 12.18% c 10.10% d. 10.54% e. 10.34%

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