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SeeMe 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

SeeMe 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 = 3.25%; RPM = 6.45%; and b = 1.27. Based on the CAPM approach, what is the cost of common equity from retained earnings?

A.) 8.19%

B.) 9.70%

C.) 10.58%

D.) 11.44%

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