Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You...

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Finance

Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: D0= $0.90; P0= $67.50; 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.9.33%
b.9.44%
c.1.44%
d.1.56%
e.9.23%

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