You Have the Following Data: RRF = 4

question 55

Multiple Choice

You have the following data: rRF = 4.00%; RPM = 5.00%; and b = 1.15. What is the cost of equity from retained earnings based on the CAPM approach?

• A) 9.75%
• B) 10.04%
• C) 10.34%
• D) 10.65%

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Definitions:

Algebraic Expression

An expression constructed from integers, variables, and algebraic operations.

Antifreeze

A liquid added to the water in a cooling system to lower its freezing point, commonly used in automobile engines.

Cooling System

A system designed to remove heat from an area or machinery, commonly using a fluid or air to transfer heat away.

Algebraic Expression

An algebraic expression is a mathematical phrase that can contain numbers, variables, and operation symbols, but no equality sign.