O'Brien Inc. has the following data: TRF = 5.00 % ; RPM = 6.00% ; and b = 1.10. What is the firm's cost of equity from retained earnings based on the CAPM? a. 11.83% b. 13.22% C. 11.25% d. 8.93% e. 11.60%

Cornerstones of Financial Accounting
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ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 33MCQ: Selected information for Berry Company is as follows: Berrys return on equity rounded to the nearest...
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16.
O'Brien Inc. has the following data: TRF = 5.00%; RPM = 6.00%; and b = 1.10. What is the
firm's cost of equity from retained earnings based on the CAPM?
a. 11.83%
b. 13.22%
C. 11.25%
d. 8.93%
e.
11.60%
istiqa
Transcribed Image Text:16. O'Brien Inc. has the following data: TRF = 5.00%; RPM = 6.00%; and b = 1.10. What is the firm's cost of equity from retained earnings based on the CAPM? a. 11.83% b. 13.22% C. 11.25% d. 8.93% e. 11.60% istiqa
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