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5) A company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: Di

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5) A company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: Di S0.80, P.-S22.50, and g-5% (constant). Based on the DCF approach, what is the cost of equity from retained earnings (round your answer to two decimal places)? The expected dividend is $1.50 per share of common stock priced at $15.00. What is the cost of internal common equity if the long-term growth in dividends is projected to be 4% indefinitely (round your answer to two decimal places)? 6)

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