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Rhino Inc. hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: D1=$1.6;P0=$40.3; and

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Rhino Inc. hired you as a consultant to help them estimate their cost of capital. You have been provided with the following data: D1=$1.6;P0=$40.3; and g=3.6% (constant). Based on the DCF approach. what is the cost of equity from retained earnings? 7.07% 7.57% 6.57% 8.07% 6.07%

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