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You are hired as a consultant to help a CFO estimate the cost of capital of his company. You have been provided with the following

You are hired as a consultant to help a CFO estimate the cost of capital of his company. You have been provided with the following data: rRF = 2.70%; the total market return is 8.7%; and beta = 1.20. Based on the CAPM approach, what is the cost of equity from retained earnings?

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