Question: If D 1 = $2.50, g (which is constant) = 8%, and P 0 = $53, what is the stocks expected capital gains yield for
If D1 = $2.50, g (which is constant) = 8%, and P0 = $53, what is the stocks expected capital gains yield for the coming year, xx%, no % sign?
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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 = $24.50; and g = 11.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings?
14.67%
15.08%
4.08%
3.67%
11.84%
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