Steeler Inc.'s CFO hired you as a consultant to help her estimate the cost of capital.  You have been provided with the following data:  risk-free rate (rRF) = 4.15%; market risk premium = 5.00%; and beta = 1.14.  Based on the CAPM approach, what is the cost of equity from retained earnings? 9.85% 9.67% 10.60% 10.28% 10.93%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Steeler Inc.'s CFO hired you as a consultant to help her estimate the cost of capital.  You have been provided with the following data:  risk-free rate (rRF) = 4.15%; market risk premium = 5.00%; and beta = 1.14.  Based on the CAPM approach, what is the cost of equity from retained earnings?

9.85%
9.67%
10.60%
10.28%
10.93%
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