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A company hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $0.96; P0 =
A company hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $0.96; P0 = $39.76; and g = 1.94% (constant). What is the cost of equity from retained earnings? Do not round your intermediate calculations. Express your answer as a percent rounded to two decimal places. (For example, 4.567% should be entered as 4.57)
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