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Rivoli Inc. hired you as a consultant to help estimate its cost of common equity. You have been provided with the following data: D0 =
Rivoli Inc. hired you as a consultant to help estimate its cost of common equity. You have been provided with the following data: D0 = $0.80; P0 = $22.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of common from retained earnings? Answer 10.69% 11.25% 11.84% 12.43% 13.05%
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