Computing the cost of equity

Reference no: EM13972899

Assume that ABC Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $0.90; P0 = $30.00; and g = 6.00% (constant). Based on the DCF approach, what is its cost of equity?

1. 8.37%

2. 9.18%

3. 9.60%

4. 11.33%

5. 7.66%

Reference no: EM13972899

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Computing the cost of equity : Assume that ABC Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $0.90; P0 = $30.00; and g = 6.00% (constant). Based on the DCF approach, what is its cost of equity?

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