Steves specialties inc paid its dividend yesterday which, Ask an Expert

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Steve's Specialties Inc. paid its dividend yesterday, which was $1.25. The dividend has been growing at a rate of 0.045 and is expected to continue indefinitely at that rate. Steve's common stock is currently trading at 21.00 per share. The firms beta is 0.96. Treasuries (T-bills) are currently yielding 0.030. Average return on the market in 0.08. Using the DCF approach, what is Steve's cost of retained earnings? (Show work and equations)

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Financial Management, Finance

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