I hired you as a consultant to help estimate the cost of capital. You have been provided with the following data: D0=$1.20, P=$40.00 and g=7% (constant). Based on the DCF approach, what is my cost of equity from retained earnings?

Hi, blakleymoore!

Greetings and WELCOME to the site! I just moved your question that you had posted in Introductions to this forum topic area so that it will get the most exposure to those who are best able to answer it. Introductions is for people to introduce themselves and we try to not ask questions there.

It can be a little confusing when first learning how to use this site! Your question will get noticed much more in this forum topic area.

We would appreciate it if you would return to Introductions sometime to tell us a little about yourself though, if you would be willing to do that.

Please read the expectations concerning the posting of homework questions that can be found via clicking on the following link.

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Thanks!