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 = $27.50; and g = 7.00% (constant) .Based on the DCF approach,what is the cost of equity from retained earnings?
A) 9.29%
B) 9.68%
C) 10.08%
D) 10.50%
E) 10.92%
Correct Answer:
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