Scanlon Inc

question 68

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: r_RF = 4.10%;RP_M = 5.25%;and b = 1.70.Based on the CAPM approach,what is the cost of equity from retained earnings?

• A) 15.24%
• B) 12.63%
• C) 10.03%
• D) 13.94%
• E) 13.03%

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Definitions:

Biological Mom

A term referring to a woman who has genetically contributed to the creation and birth of a child.

Adopted Sibling

An adopted sibling is a brother or sister who has become part of a family through the legal process of adoption, rather than by birth.

Emotionality

The quality or state of being emotional; the degree to which a person's behavior is influenced by emotions.

Agreeableness

A personality trait characterized by qualities of being kind, cooperative, and sympathetic toward others.