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    CAPM Approach to Earnings Retained

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    Assume that you are a consultant to Magee Inc. and you have been provided with the following data: rRF = 4%, RPM = 5% and b= 1.15. What is the cost of quity from retained earnings based on the CAPM approach?

    © BrainMass Inc. brainmass.com June 3, 2020, 10:55 pm ad1c9bdddf
    https://brainmass.com/business/capital-asset-pricing-model/256127

    Solution Summary

    The solution examines CAPM's approach to earnings retained. The cost of quity is determined.

    $2.19

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