Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $45.00; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?

A. 7.59%
B. 9.49%
C. 11.10%
D. 10.15%
E. 8.63%


Answer: B

Business

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