The cost of raising capital through retained earnings is the cost of raising capital through issuing new common stock. The cost of equity using the CAPM approach The yield on a three-month T-bill is 3.12%, and the yield on a 10-year T-bond is 4.23%. the market risk premium is 5.75%. The DAmico Company has a beta of 0.78. Using the Capital Asset Pricing Model (CAPM) approach, DAmicos cost of equity is