Find the cost of equity from retained earnings


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: the risk-free rate of return is 4.00%; the market risk premium is 6.00%; and Scanlon's beta is 0.85. 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
Reference No:- TGS0550324

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