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The common stock of Anthony Steel has a beta of 0.6. The risk-free rate is 2.4 percent and the market risk premium (rM - rRF)

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The common stock of Anthony Steel has a beta of 0.6. The risk-free rate is 2.4 percent and the market risk premium (rM - rRF) is 6.4 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? 6.24% 5.94% 6.54% 6.84% 7.14%

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