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1.Kim Plc has 1m shares of 25p nominal value. The shares have a current P0 of 99p. A dividend of 7p has recently been paid.

1.Kim Plc has 1m shares of 25p nominal value. The shares have a current P0 of 99p. A dividend of 7p has recently been paid. Dividends are expected to grow by 5% indefinitely. You are required to calculate the cost of equity and the total market value of the equity.

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