4. Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: DO = $0.80; P 0 = $25.00; and g = 8.00% ( constant). Based on the DCF approach, what is the cost of equity from retained earnings? Do not round your intermediate calculations. a 9.85% b. 14.32% c. 11.46% d . 9.74% e. 13.17%

4. Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: DO = $0.80; P 0 = $25.00; and g = 8.00% ( constant). Based on the DCF approach, what is the cost of equity from retained earnings? Do not round your intermediate calculations. a 9.85% b. 14.32% c. 11.46% d . 9.74% e. 13.17%

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter14: Distributions To Shareholders:dividends And Share Repurchases

Section: Chapter Questions

Problem 3TCL

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