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Assume that JJJ Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0=$1.0;P0=$50; and g=5%

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Assume that JJJ Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0=$1.0;P0=$50; and g=5% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? Select one: a. 7.5% b. 8.2% c. 8.0% d. 7.1% Assume that you are a consultant to GGG Inc., and you have been provided with the following data: D1=$1.5;P0=$45; and g=7% (constant). What is the cost of equity from retained earnings based on the DCF approach? Select one: a. 10.33% b. 10.67% c. 9.67% d. 9.33% FFF Inc. has the following data: rRf=5%;RPM=9%; and beta =1.2. What is the firm's cost of equity from retained earnings based on the CAPM? Select one: a. 16.3% b. 17.9% c. 17.2% d. 15.8%

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