Question: O'Brien Inc. has the following data: rRF = 5 . 0 0 % ; RPM = 7 . 0 0 % ; and b =

O'Brien Inc. has the following data: rRF =5.00%; RPM =7.00%; and b =1.55. What is the firm's cost of equity from retained earnings based on the CAPM?
a.14.75%
b.18.60%
c.13.55%
d.15.85%
e.12.00%

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