Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital.You have
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Question:
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:the risk-free rate of return is 3.50%; the market risk premium is 6.00%; and Scanlon's beta is 0.95.Based on the CAPM approach, what is the cost of equity from retained earnings?Enter your answer rounded to two decimal places.Do not enter % in the answer box.For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.
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