Question
Teall Development Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D
Teall Development Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1 = $1.45; P0 = $22.50; and g = 6.50% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? SHOW WORK PLEASE
| a. | 13.59% | |
| b. | 12.30% | |
| c. | 11.68% | |
| d. | 11.10% | |
| e. | 12.94% |
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
