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A company has just declared an ordinary dividend of 16p per share. The cum-div market price of an ordinary share is 200p. Assuming a dividend

A company has just declared an ordinary dividend of 16p per share. The cum-div market price of an ordinary share is 200p. Assuming a dividend growth rate of 10% per annum, what is the companys cost of equity capital?

A. 18.0%

B. 18.8%

C. 19.6%

D. 18.7%

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