Homework SourseD Question 2 5 pts Kaiser Aluminum has a beta of 070 If the
D Question 2 5 pts Kaiser Aluminum has a beta of 070. If the risk-free rate (RRF) is 5.0%, and the market risk premium (RPM) is 7.0%, what is the firm\'s cost of equity from retained earnings based on the CAPM? Your answer should be between 8.70 and 11.25, rounded to 2 decimal places, with no special characters. D Question 3 5 pts rs F6 5 8 9 
Solution
As per CAPM equation cost of equity
=Risk free rate(RRF) +Market risk premium(RPM)*BETA
=5+7*0.7
=9.90%
