Teall Development Company hired you as a consultant to help them estimate its cost of capital.You have been provided with the following data: D1 = $1.45;P0 = $28.00;and g = 6.50% (constant) .Based on the DCF approach,what is the cost of equity from retained earnings?
A) 9.34%
B) 12.15%
C) 10.16%
D) 10.51%
E) 11.68%
Correct Answer:
Verified
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