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

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    https://brainmass.com/business/discounted-cash-flows-model/cost-retained-earnings-using-discounted-cash-flow-method-3388

    Solution Preview

    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 ...

    Solution Summary

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

    $2.19

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