what is the cost of common from retained earnings?
Question 20
Rivoli Inc. hired you as a consultant to help estimate its cost of common equity. You have been provided with the following data: D0 = $0.80; P0 = $22.50; and g = 8.00% (constant). Based on the DCF approach, what is the cost of common from retained earnings?
10.69%
11.25%
11.84%
12.43%
13.05%