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The common stock of Anthony Steel has a beta of 1 . The risk-free rate is 3.9 percent and the market risk premium ( rM

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The common stock of Anthony Steel has a beta of 1 . The risk-free rate is 3.9 percent and the market risk premium ( rM - rRF) is 6 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

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