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What is the cost of common equity from reinvested earnings

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Question - You have been hired as a consultant by Dance Inc.'s CFO, who wants you to help them estimate the cost of capital. You have been provided with the following data: risk-free rate (rRF) = 5.50%; market risk premium (RPM) = 8.50%; and beta (b) = 0.75. Based on the Capital Asset Pricing Model (CAPM) approach, what is the cost of common equity from reinvested earnings?

Reference no: EM133033147

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