Multiple Choice
Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 1.30. Based on the CAPM approach, what is the cost of equity from retained earnings?
A) 9.67%
B) 9.97%
C) 10.28%
D) 10.60%
E) 10.93%
Correct Answer:
Verified
Correct Answer:
Verified
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