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A company has just declared a dividend of 39.25p per share. If the expected growth in future dividends is 7% pa in perpetuity and the

A company has just declared a dividend of 39.25p per share. If the expected growth in future dividends is 7% pa in perpetuity and the market price of the company's ordinary shares is 879.25p (cum div), the estimated annual cost of equity capital is

	A.	12.0%
	B.	11.5%
	C.	11.7%
	D.	11.8%

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