The common stock of Anthony Steel has a beta of 0.6. The risk-free rate is 3.2 percent and the market risk premium (rM - PRF) is 6.8 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? 6.88% 0 7.28% O 7.68% 8.0896 8.48% Which of the following is not a capital component for purposes of calculating the weighted average cost of capital (WACC)? O Corporate Bonds None of these O Preferred Stock Common Stock Commercial Paper