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Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D0 =$0.80;P0=$57.50; and

Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D0 =$0.80;P0=$57.50; and g=8.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? Do not round your intermediate calculations. a. 1.50% b. 9.29% c. 939% d. 9.50% e. 1.62%

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