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Scanton 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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Scanton 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 = 5.25%; and b = 0.80. Based on the CAPM approach, what is the cost of equity? (Multiple Choice) = 8.30% 5.02% 7.00% 7.78% 9.25%

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