QUESTION 46 O'Brien Inc. has the following data: Tre - 5.00%; RPM 6.00%, and b = 1.05. What is the firm's cost of equity from retained earnings based on the CAPM? O a. 11 30% b. 11.64% OC 11.99% d. 12.35% O e. 12.72% QUESTION 47 A company's perpetual preferred stock currently sells for $92.50 per share, and it pays an $8.00 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 5.00% of the issue price. What is the firm's cost of preferred stock a. 7.81% b. 8.229 C 8.659 d. 9.10% e 9 569