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The common stock of Anthony Steel has a beta of 1.5. The risk-free rate is 3.4 percent and the required return on the market (rM)

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The common stock of Anthony Steel has a beta of 1.5. The risk-free rate is 3.4 percent and the required return on the market (rM) is 7.8 percent. Assume the firm will be able to use retained earnings to fund the equity portion of its capital budget. What is the company's cost of retained earnings, rs? 10.90% 10.30% 10.00% 10.60% 11.20%

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