Answered: O'Brien Inc. has the following data:…

O'Brien Inc. has the following data: rRf= 5.00% rPM = 6.00% 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

4th Edition

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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Question

O'Brien Inc. has the following data:
rRf= 5.00%
rPM = 6.00%
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%

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