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The common stock of BG Company has a beta of .9. The risk-free rate is 6 percent and the market risk premium (RPM) is 5

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The common stock of BG Company has a beta of .9. The risk-free rate is 6 percent and the market risk premium (RPM) 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? a. 8.5% O b. 11.5% c. 12.3% d. 13.0% e. 13.7%

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