What is the cost of equity based on the dcf approach

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Assume that you are a consultant to Morton Inc., and you have been provided with the following data: D1 = $1.00; P0 = $25.00; and g = 6% (constant). What is the cost of equity based on the DCF approach?

a. 9.79%
b. 9.86%
c. 10.00%
d. 10.20%
e. 10.33%

 

Reference no: EM13304215

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