# Jo Company: Calculate cost of retained earnings using discounted cash flow method

JO Company's last dividend per share was $1. The stock sells for $20 per share. The expected growth rate is a constant 5 percent. Calculate the cost of retained earnings using the discounted cash flow method.

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JO company's last dividend per share was $1. The stock sells for $20 per share. The expected growth rate is a constant 5 percent. Calculate the cost of ...

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The solution displays the formula and applies it to the problem for an answer.

$2.19