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What is the cost of equity from retained earnings

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Heino Inc. hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: rRF = 5.0%; MRP = 5.0%; and b = 1.1. Based on the CAPM approach, what is the cost of equity from retained earnings? 

10.50%

10.71%

10.88%

11.03%

11.14%

Reference no: EM131132503

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