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Castro Chemical Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1

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Castro Chemical Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1 = $1.40; PO = $18.50; and g = 3.1% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? 12.59% 7.94% 11.30% 8.68% 10.67%

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