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4 . Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D

4. Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D0= $0.80; P0= $25.00; and g =8.00%(constant). Based on the DCF approach, what is the cost of equity from retained earnings? Do not round your intermediate calculations. a.9.85% b.14.32% c.11.46% d.9.74% e.13.17%

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