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Estimate its cost of capital under the following conditions: dividend paid $0.85; P 0 = $22.00; and constant g is 6.00%. My wife thinks that

  1. Estimate its cost of capital under the following conditions: dividend paid $0.85; P0= $22.00; and constant g is 6.00%. My wife thinks that stock price will soon rise to $40.00. If the stock price changes as my boss thinks, by how much would the cost of equity from retained earnings change?

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