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You have been hired as a consultant by Capital Pricing Company's CFO, who wants you to help her estimate the cost of capital. You have

You have been hired as a consultant by Capital Pricing Company's CFO, who wants you to help her estimate the cost of capital. You have been provided with the following data: risk free rate

= 3 %

; market risk premium

= 7.3 %

; and beta

= 1.22 .

Based on the CAPM approach, what is the cost of common stock from reinvested earnings?

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