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Business, 28.11.2019 07:31 nila173

Kimona company hired you as a consultant to estimate its cost of common equity. you have obtained the following data: d0 = $0.85; p0 = $20.00; and g = 5.00% (constant). the ceo thinks, however, that the stock price is temporarily depressed, and that it will soon rise to $40.00. based on the dcf approach, by how much would the cost of common equity from retained earnings change if the stock price changes as the ceo expects?

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