Question-cost of equity from retained earnings


Assume that Mary Brown Inc. hired you as a consultant to help itestimate the cost of capital. You have been provided with thefollowing data: D0 = $1.20; P0 = $40.00; andg = 7% (constant). Based on the DCF approach, what is Brown's cost of equity from retained earnings?

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Finance Basics: Question-cost of equity from retained earnings
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