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Caribou Development Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D

Caribou Development Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data:

D_{1} =

1.50

;

P_{0} =

30

; and

g = 6.50 % (

constant

) .

Based on the DDM approach, what is the cost of equity from retained earnings?

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