Calculate the cost of equity capital for the


The BG Company just paid a dividend of $1.35 per share. The company has a return on equity (ROE) equal to 12%, and a retention ratio of 75%. The company's stock current trades for $55 per share. Calculate the cost of equity capital for the firm. (Enter percentages as decimals and round to 4 decimals).

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Financial Management: Calculate the cost of equity capital for the
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