# Cost of Equity

Assume that you are a consultant to Broske Inc., and you have been provided with the following data: D1 = $1.30; P0 = $42.50; and g = 7.00% (constant). What is the cost of equity from retained earnings based on the DCF approach?

A. 9.08%

B. 9.56%

C. 10.06%

D. 10.56%

E. 11.09%

https://brainmass.com/business/financial-accounting-bookkeeping/cost-of-equity-139296

#### Solution Summary

The solution explains how to calculate the cost of equity

$2.19