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Business, 14.04.2020 23:15 adjjones2011

David Inc hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1 = $1.50; P0 = $29.00; and g = 6.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings?
A. 8.07%
B. 8.26%
C. 8.41%
D. 8.54%
E. 8.70%

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