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ABC Inc. hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D

ABC Inc. hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D = $1.45; Po = $26.00; and g = 6.50% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? Answer just the number without the % sign. Round to two decimal places.

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