Assume that Kish Inc.hired you as a consultant to help estimate its cost of capital.You have obtained the following data: D0 = $0.90;P0 = $47.50;and g = 7.00% (constant) .Based on the DCF approach,what is the cost of equity from retained earnings? Do not round your intermediate calculations.
A) 8.85%
B) 10.38%
C) 10.02%
D) 8.03%
E) 9.03%
Correct Answer:
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