The cost of retained earnings

True or False: It is free for a company to raise money through retained earnings, because retained earnings represent money that is left over after dividends are paid out to shareholders.

True

False

The cost of equity using the CAPM approach

The current risk$-$free rate of return $(r_{RF})$ is $4\mathrm{.}67\%$ while the market risk premium is $6\mathrm{.}63\%.$ The Jefferson Company has a beta of $0\mathrm{.}92.$ Using the capital asset pricing model $($CAPM$)$ approach, Jefferson's cost of equity is