Assume That Kish Inc

question 57

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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