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Suppose the current risk-free rate of return is 3.5 percent and the expected market return is 9 percent: Fashion Faux-Pas' common stock has a beta

Suppose the current risk-free rate of return is 3.5 percent and the expected market return is 9 percent: Fashion Faux-Pas' common stock has a beta coefficient equal to 1.4. Using the CAPM approach, compute the firm's cost of retained earnings

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