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Assume That You Are a Consultant to Broske Inc

Question 85

Multiple Choice

Assume that you are a consultant to Broske Inc. ,and you have been provided with the following data: D1 = $0.67;P0 = $45.00;and g = 8.00% (constant) .What is the cost of equity from retained earnings based on the DCF approach?


A) 7.59%
B) 9.49%
C) 11.10%
D) 10.15%
E) 8.63%

Correct Answer:

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