Multiple Choice
Super Solutions Inc. is a constant growth firm, which just paid a dividend of $3.00, sells for $33.00 per share, and has a growth rate of 6 percent. Which of the following is the cost of retained earnings using the discounted cash flow (DCF) approach? (Round off the answer to two decimal places.)
A) 12.55 percent
B) 15.64 percent
C) 16.25 percent
D) 13.35 percent
E) 12.40 percent
Correct Answer:
Verified
Correct Answer:
Verified
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