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Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $1.67; P0 = $87.50; and

Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $1.67; P0 = $87.50; and g = 4.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?

a. 7.25% b. 8.19% c. 6.91% d. 10.63% e. 9.50%

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