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Assume that you are a consultant to Morton Inc., and you have been provided with the following data: D0 = $2.5; P0 = $40; and

Assume that you are a consultant to Morton Inc., and you have been provided with the following data: D0 = $2.5; P0 = $40; and g = 4.2% (constant). What is the cost of equity from retained earnings based on the DCF approach

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