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Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $42.50; and

Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $42.50; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?

a) 11.30%

b) 9.58%

c) 9.96%

d) 11.68%

e) 7.95%

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