As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common...
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As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: Do = $0.80; Po= $22.50; and gL = 8.00% (constant). Based on the dividend growth model, what is the cost of common from reinvested earnings? As the assistant to the CFO of Johnstone Inc., you must estimate its cost of common equity. You have been provided with the following data: Do = $0.80; Po= $22.50; and gL = 8.00% (constant). Based on the dividend growth model, what is the cost of common from reinvested earnings?
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