Cost of retained earnings using discounted cash flow method
JO Company's last dividend per share was $1. The stock sells for $20 per share. The expected growth rate is a constant 5 percent. Calculate the cost of retained earnings using the discounted cash flow method.© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/cost-of-retained-earnings-using-discounted-cash-flow-method-39s
...ained earnings using the discounted cash flow method.
D0 (1 + g)
Formula : Ke = ---------------- + g