As a Consultant to Basso Inc

question 48

Multiple Choice

As a consultant to Basso Inc.,you have been provided with the following data: D₁ = $0.67; P₀ = $27.50; and g = 8.00% (constant) .What is the cost of common from reinvested earnings based on the DCF approach?

• A) 9.42%
• B) 9.91%
• C) 10.44%
• D) 10.96%
• E) 11.51%

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