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You are given the following data for ABC Company Estimated risk free rate (r RF ) 4.00% Market risk premium (RP M ) 4.00% Beta

You are given the following data for ABC Company
Estimated risk free rate (rRF) 4.00%
Market risk premium (RPM) 4.00%
Beta (b) 1.00

Based?on CAPM, the company?s cost of common stock from retained earnings is

1- Less than 8%
2- Between 8.0% and 8.10%
3- Between 9.0% and 9.1%
4- More than 10%

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