Samady5432 Samady5432

27-05-2023
Business

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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 = 5.80%; and b = 1.95. Based on the CAPM approach, what is the cost of equity from retained earnings?
a. 11.85% b. 15.41% c. 19.31% d. 9.90% e. 13.80%

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