Using capm what is the cost of retained earnings

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Steves specialties INC paid its dividend yesterday of $4.00. The dividend has been growing at a rate of 0.010 and is expected to contiue growing at that rate indefinatly. Steves common stock is currently trading at $22.00 per share. The firms beta is 0.96.

T billls are currently yielding 0.035

Average return on the market is 0.10.

Using CAPM what is the cost of retained earnings?

Reference no: EM131326957

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