Assume That Kish Inc

question 40

Multiple Choice

Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D0 = $0.90; P0 = $27.50; and g = 7.00% (constant) . Based on the DCF approach, what is the cost of equity from retained earnings?

• A) 9.29%
• B) 9.68%
• C) 10.08%
• D) 10.50%
• E) 10.92%

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