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Assume that Angelina Company hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0=$0.90;P0=$40.00; and g=7.00%

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Assume that Angelina Company hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0=$0.90;P0=$40.00; and g=7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? 9.41% 8.66% 10.33% 8.37% 9.21%

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