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Kovach Lumber Company Hired You to Help Estimate Its Cost

question 88

Multiple Choice

Kovach Lumber Company hired you to help estimate its cost of capital.You were provided with the following data: D1 = $1.10; P0 = $27.50; g = 6.00% (constant) ; and F = 5.00%.What is the cost of equity raised by selling new common stock?


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