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Scanlon Inc

Question 74

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%

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