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    Exam 10: The Cost of Capital
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    O'Brien Inc
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O'Brien Inc

Question 56

Question 56

Multiple Choice

O'Brien Inc.has the following data: rRF = 5.00%;RPM = 6.00%;and b = 0.70.What is the firm's cost of equity from retained earnings based on the CAPM?


A) 6.90%
B) 9.02%
C) 10.58%
D) 11.41%
E) 9.20%

Correct Answer:

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