Multiple Choice
Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D0 = $0.80; P0 = $22.50; and g = 8.00% (constant) . Based on the DCF approach, what is the cost of equity from retained earnings?
A) 10.69%
B) 11.25%
C) 11.84%
D) 12.43%
E) 13.05%
Correct Answer:
Verified
Correct Answer:
Verified
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