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Cost of Equity from Retaining Earnings for Magee Inc.

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Assume that you are a consultant to Magee Inc., and you have been provided with the following data: rRF = 4.00%; RPM = 5.00%; and b = 1.15. What is the cost of equity from retained earnings based on the CAPM approach?

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The solution explains how to calculate the cost of equity from retaining earnings using the CAPM approach.

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