What is the cost of common equity from reinvested earnings

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Problem 1: As a consultant to Enjoy Inc., you have been provided with the following data: expected dividend next period (D10L) = $0.50; current price (P) = $20.00; and constant growth rate in dividends (g) = 5.00%. What is the cost of common equity from reinvested earnings based on the dividend growth approach?

Reference no: EM132940568

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