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Assume That You Are a Consultant to Broske Inc

Question 68

Multiple Choice

Assume that you are a consultant to Broske Inc.,and you have been provided with the following data: D1 = $0.67; P0 = $27.50; and g = 8.00% (constant) .What is the cost of equity from retained earnings based on the DCF approach?


A) 9.42%
B) 9.91%
C) 10.44%
D) 10.96%
E) 11.51%

Correct Answer:

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