3. Assume that you are a consultant to Charles Inc., and you have been provided with the following data: D1 = $0.70; P0 = $48.00; and g = 7.00% (constant). What is the cost of equity from retained earnings based on the Discounted Cash Flow (DCF) approach? A. 8.46% B. 9.49% C. 11.10% D. 10.15% E. 8.63%

4. David Inc hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1 = $1.50; P0 = $29.00; and g = 6.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? A. 9.88% B. 10.26% C. 11.17% D. 12.00% E. 13.06%