Find out the cost of equity from retained earnings


Problem:

Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $0.90; P0 = $22.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings?

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Finance Basics: Find out the cost of equity from retained earnings
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