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The Cost of Common Stock Equity Can Best Be Described

Question 35

Multiple Choice

The cost of common stock equity can best be described as:

A) P_o= D₁/(k_s-g)
B) k_s= (D₁/P_o) + g
C) P_o= D₁/(k_s+g)
D) k_s= (D₁/P_o) - g

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