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You are given the following data for ABC Company Last dividend (DO) $0.50 Actual Common share Price (PO) 30.00 Assumed constant growth(g) 5% Based on

You are given the following data for ABC Company

Last dividend (DO) $0.50

Actual Common share Price (PO) 30.00

Assumed constant growth(g) 5%

Based on discounted cash flow, the cost of common stock from retained earning is

  1. 6%
  2. 6.5%
  3. 6.75%
  4. More than 7%

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