Question: Consider the following data: r RF = 4.15%; RP M = 5.35%; and b = 1.10. Based on the CAPM approach, what is the cost

Consider the following data: r RF = 4.15%; RP M = 5.35%; and b = 1.10. Based on the CAPM approach, what is the cost of equity from retained earnings?

a. 10.04% b. 9.23% c. 7.25% d. 8.70% e. 11.37%

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