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Business, 18.12.2019 19:31 repirce4238

The ceo of harding media inc. as asked you to estimate its cost of common equity. you have obtained the following data: d0 = $0.85; p0 = $22.00; and g = 6.00% (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 from reinvested earnings change if the stock price changes as the ceo expects? select one: a. -1.49% b. -1.66% c. -1.84% d. -2.03% e. -2.23%

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