A Consultant to Basso Inc

question 45

Multiple Choice

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 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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