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A company has 5,000,000 ordinary shares outstanding. The market price of the share is Rs 96 while the book value is Rs 65. The firms

A company has 5,000,000 ordinary shares outstanding. The market price of the share is Rs 96 while the book value is Rs 65. The firms earnings and diuvidends per share are Rs 10 and 7 respectively. The company wants to issue 1,000,000 shares with a net proceeds of Rs. 80 per share what is the cost of capital of the new issue?

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