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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 = $1.10; P0 = $78.00; and g = 3.50% (constant). Based on the DCF approach, what is the cost of equity from retained earnings?

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