Question: What is the correct formula for E8 to find the cost of retained earnings using the constant growth dividend discount model? D E F B

What is the correct formula for E8 to find the cost of retained earnings using the constant growth dividend discount model? D E F B 1 2 3 4 5 6 7 8 9 Next Dividend (D) Dividend Growth Rate Beta Stock Price Expected Market Return Risk-free Rate Cost of Retained Earnings 2.15 3.00% 1.25 $ 30.00 9.00% 2.50% ? O =E7+E4'E6 =E2/E5 E3 O=E4'E6+3 0 =E7+E4"(E6-E7)

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