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What is the cost of common from reinvested earnings

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As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: Do = $0.80; Po = $22.50; and gi = 8.00% (constant). Based on the dividend growth model, what is the cost of common from reinvested earnings?

Reference no: EM133114538

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