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6. Rhino Inc. hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: D1

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6. Rhino Inc. hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: D1 = $1.30; P0 = $40.00; and g = 7% (constant). Based on the DCF approach, What is the cost of equity from retained earnings? A. 9.66% B. 9.84% C. 9.97% D. 10.08% E. 10.25%

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