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Business, 05.11.2019 05:31 Adeenieweenie

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 gl = 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 dividend growth model, by how much would the cost of common from reinvested earnings change if the stock price changes as the ceo expects? a. −1.49%b. −1.66%c. −1.84%d. −2.03%e. −2.23%

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