Assume That Kish Inc

question 44

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 = $47.50;and g = 7.00% (constant) .Based on the DCF approach,what is the cost of equity from retained earnings? Do not round your intermediate calculations.

• A) 10.11%
• B) 7.22%
• C) 11.28%
• D) 6.95%
• E) 9.03%

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