Find the cost of equity from retained earnings


Question: 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 = 5.00%; RPM = 6.00%; and b = 0.90. Based on the CAPM approach, what is the cost of equity from retained earnings?

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Finance Basics: Find the cost of equity from retained earnings
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