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2.2. JP Ltd wishes to calculate its cost of equity and provides the following information. Number of shares: 1,000,000 Nominal value of each share: R2

2.2. JP Ltd wishes to calculate its cost of equity and provides the following information. Number of shares: 1,000,000 Nominal value of each share: R2 Market price of each share: R2.80 Last declared dividend: 12% Expected growth rate: 6% Required: Calculate the cost of equity using the Dividend Growth Model (7)

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