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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: Do =

Rivoli Inc. hired you as a consultant to help estimate its cost of common equity. You have been provided with the following data: Do = $0.80; Po = $22.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of common from common equity assuming no flotation costs?

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