Question
Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D 0 =
Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $1.33; P0 = $61; and g = 9% (constant). Based on the DCF approach, what is the cost of equity from retained earnings?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
