Nike Company hired you to help estimate its cost of capital. You obtained the following data: D 1 = $1.25; P 0 = $30.00

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answerhappygod
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Nike Company hired you to help estimate its cost of capital. You obtained the following data: D 1 = $1.25; P 0 = $30.00

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Nike Company hired you to help estimate its cost ofcapital. You obtained the following data: D 1 = $1.25; P 0 =$30.00; g = 5.00% (constant); and F = 6.00%. What is the cost ofequity raised by selling new common stock?
a.
11.32%
b.
10.85%
c.
9.90%
d.
9.43%
e.
9.24%
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