2. The FDX stock price closed at $242.77 on 11/5/2021. Its EPS is $18.84 and it is expected to pay a dividend (D₁ =$3.00 per share), thus has a payout ratio of 15.92%. FDX has a minimum required rate of return of 12% on reinvested retained earnings. You may estimate the growth rate of FDX using: g = (return on reinvested capital)*(1- payout ratio). Using the DCF model: r = D₁/P₀ + g, what is the estimate for the cost of reinvested retained earning using the DCF model? Stock parameters for FDX may be found at:

https://finance.yahoo.com/quote/FDX/

g =

r_FDX = D₁/P₀ + g =