Question: O'Brien Inc. has the following data: r RF = 5.00%; RP M = 6.00%; and b = 0.70. What is the firm's cost of equity

O'Brien Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 0.70. What is the firm's cost of equity from retained earnings based on the CAPM?

a. 6.90%
b. 9.02%
c. 9.20%
d. 11.41%
e. 10.58%

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