Question Completion Status: % (to two decimal places) QUESTION 6 Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been provided with the following data: Do = $0.90; Po = $24.50; and g = 11.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? 3.67% 15.08% 14.67% 11.84% 4.08% QUESTION 7 Makamemony Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm returns will have the probability distribution shown below. What's the standard deviation of the estimated returns (Hint: Use the formula for the standard deviation of a population, not a sample.) Economic Conditions Strong Normal Weak Prob. 40% 40% 20% Return 35.0% 12.0% -18.0% 19.55% 18.86% Question Completion Status: _% (to two decimal places) QUESTION 6 Rivoli Inc. hired you as a consultant to help estimate its cost of ca $24.50; and g = 11.00% (constant). Based on the DCF approach, 0 3.67% O 15.08% 14.67% 11.84% 4.08% QUESTION 7 Makamemony Inc.'s manager believes that economic conditions du returns will have the probability distribution shown below. What's th standard deviation of a population, not a sample.) Economic Conditions Strong Normal Weak Prob. 40% 40% 20% Return 35.0% 12.0% -18.0%