To help them estimate the company's cost of capital, Smithco has hired you as a...
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To help them estimate the company's cost of capital, Smithco has hired you as a consultant. You have been provided with the following data: D1 = $1.45; P0 = $22.50; and gL = 3.50% (constant). Based on the dividend growth approach, what is the cost of common from reinvested earnings? 13.59% 11.68% 12.30% 12.94% 9.94%
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