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Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D 1 = $1.25; P 0 = $15.00;
Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.25; P0 = $15.00; g = 5.00% (constant); and F = 6.00%. What is the cost of equity raised by selling new common stock?
a. | 13.87% | |
b. | 15.53% | |
c. | 13.03% | |
d. | 16.50% | |
e. | 13.45% |
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