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Cost of Common Equity Capital from Retained Earnings using DCF

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Broske Inc., is estimating its cost of common equity capital and it has the following relevant information: 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?

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This solution assists in determining the cost of common equity capital from retained earnings using DCF.

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