As a consultant to Basso Inc.,you have been provided with the following data: D₁ = $0.67; P₀ = $27.50; and g = 8.00% (constant).What is the cost of common from reinvested earnings based on the DCF approach? A) 9.42% B) 9.91% C) 10.44% D) 10.96% E) 11.51%

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$$\begin{array} { l r } 
D _ { 1 } & \text { \$0.67 } \
P _ { 0 } & \text { \$27.50 } \
g & \text { 8.00\%} \
I _ { 5 } = D _ { 1 } / p _ { 0 } + \text { g} & 1 0 .44 \%
\end{array}$$

As a Consultant to Basso Inc