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As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data:

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As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: D0 = RO.8: PO = 20.91; and gL = 5% (constant). Based on the dividend growth model, what is the cost of common from reinvested earnings? %

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