Edward Enterprises, which is debt-free and finances only with equity from retained earnings. You were given the following information: rRF = 3.50%; RPM = 4.50%; and b = 0.88. What is the firm's cost of equity from retained earnings based on the CAPM?

A. 5.90%

B. 6.80%

C. 7.46%

D. 8.41%

E. 9.20%

Question

Killian Burch

25 November, 21:59

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Kristian Sampson · Answer 1

Kristian Sampson 26 November, 01:36

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Te answer is letter B 6.80%

Edward Enterprises, which is debt-free and finances only with equity from retained earnings. You were given the following information: rRF = 3.50%; RPM = 4.50%; and b = 0.88. What is the firm's cost of equity from retained earnings based on the CAPM?A. 5.90%B. 6.80%C. 7.46%D. 8.41%E. 9.20%