Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $42.50; and g = 8.00% (constant). What is the cost of equity from retained earnings based on the DCF approach? ?
Answer
a. 9.96%
b. 11.68%
c. 7.95%
d. 9.58%
e. 11.30%