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3. DAEHAN Merchandising has outstanding 200,000 ordinary shares pero value P100. The current price of the ordinary shares is P120 and the dividend per

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3. DAEHAN Merchandising has outstanding 200,000 ordinary shares pero value P100. The current price of the ordinary shares is P120 and the dividend per share amounts to P3. DAEHAN is expecting a 10% growth rate and is subject to 30% income tax rate. Compute the cost of ordinary shares assuming that DAEHAN plans to source the long-term funds from issuing ordinary shares.

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