Question 5 - Cost of Retained Earnings [2 points]: Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rre= 4.10%; RPM = 5%, and B: =1.30. Based on the CAPM approach, what is the cost of equity from retained earnings? Question 6 - Cost of New Common Equity (2 points]: Analysts of the ICM Corporation have indicated that the company is expected to grow at a 5 percent rate for as long as it is in business. Currently, ICM's stock is selling for $100 per share. The most recent dividend paid by the company was $5 per share (i.e., Do = $5). If ICM issues new common stock, it will incur flotation costs equal to 7 percent. ICM's marginal tax rate is 40 percent. What is its cost of new equity