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13. A company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1

13. A company hired you as a consultant to help them estimate its cost of capital. You have been provided with the following data: D1 = $2; P0 = $40; and g = 3% (constant). Based on the constant dividend growth model approach, what is the companys cost of equity?

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