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The common stock of Anthony Steel has a beta of 0.7. The risk-free rate is 3.9 percent and the market risk premium (M - TRF)

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The common stock of Anthony Steel has a beta of 0.7. The risk-free rate is 3.9 percent and the market risk premium (M - TRF) is 5 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? 7.80% 6.20% O 7.40% 6.60% 7.00%

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