Question
Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $12.50; and
Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $12.50; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?
a. 11.76%
b. 13.36%
c. 12.83%
d. 14.16%
e. 16.70%
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Fundamentals Of Financial Management
Authors: James C. Van Horne
10th Edition
0138596875, 978-0138596873
