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use the following data to calculate the firm's cost of retained earnings using CAPM. Risk free rate: 2% Market rate: 10% Growth rate: 6% Borrowing

use the following data to calculate the firm's cost of retained earnings using CAPM.

Risk free rate: 2%

Market rate: 10%

Growth rate: 6%

Borrowing rate: 7.5%

Beta: 1.250

Todays share price: $20.00

Anciticpated Dividends: $1.50

Tax rate: 35%

a. 12%

b. 15%

c. 16.5%

d. 22.50%

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