canlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.10%; and b = 1.10. Based on the CAPM approach, what is the cost of equity from retained earnings?
a. 10.12%
b. 9.61%
c. 9.20%
d. 9.71%
e. 10.30%
