Scanlon Inc

question 22

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

• A) 9.49%
• B) 9.79%
• C) 10.09%
• D) 10.40%

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