Assume that ABC Inc. hired you as a consultant to help estimate its cost of capital....
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Assume that ABC Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: Do = $0.90; Po = $42.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? Answer just the number without the % sign. Round to two decimal places. Assume that ABC Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: Do = $0.90; Po = $42.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? Answer just the number without the % sign. Round to two decimal places.
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