Assume That You Are a Consultant to Broske Inc

question 6

Multiple Choice

Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $0.67; P0 = $27.50; and g = 8.00% What is the cost of common from retained 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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