Assume that you are a consultant to Tintle Inc., and you have been provided with the following data: D1 = $0.81; P0 = $23.43; g = 4.00% (constant). What is the cost of common equity from retained earnings based on the DCF approach?
A) 3.46%
B) 4.00%
C) 4.81%
D) 4.97%
E) 7.46%