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 = 0.70.Based on the CAPM approach,what is the cost of equity from retained earnings?
A) 9.25%
B) 7.00%
C) 8.47%
D) 7.08%
E) 7.78%
Correct Answer:
Verified
Correct Answer:
Verified
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