Question
A company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: Last dividend
A company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: Last dividend = $3.00; P0 = $178.00; and g = 5.50% (constant). Based on the DCF approach, what is the cost of equity from retained earnings?
| 6.62% | ||
| 7.28% | ||
| 4.83% |
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International Financial Management
Authors: Jeff Madura
2nd Edition
0314430296, 978-0314430298
