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What is the cost of common from retained earnings

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Rivoli Inc. hired you as a consultant to help estimate its cost of common equity. 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 common from retained earnings?

a. 10.69%

b. 11.25%

c. 11.84%

d. 12.43%

e. 13.05%

Reference no: EM131132521

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