Question
Assume that you are a consultant to D.C.F. Inc., and you have been provided with the following data: D1 = $0.40; P0 = $30.00; and
Assume that you are a consultant to D.C.F. Inc., and you have been provided with the following data: D1 = $0.40; P0 = $30.00; and g = 4.00% (constant). What is the cost of common equity from retained earnings based on the DCF approach?
A.) 1.33%
B.) 3.33%
C.) 4.44%
D.) 5.33%
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
3rd Edition
0073382426, 9780073382425
