What is the cost of common from retained earnings

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Teall Development Company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1 = $1.45; P0 = $22.50; and g = 6.50% (constant). Based on the DCF approach, what is the cost of common from retained earnings? Answer 11.10% 11.68% 12.30% 12.94% 13.59%

Reference no: EM13275114

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