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A firm has 8,000,000 ordinary shares outstanding. The current market price is Rs.25 and the book value is Rs.18 per share. The firms earnings per

A firm has 8,000,000 ordinary shares outstanding. The current market price is Rs.25 and the book value is Rs.18 per share. The firms earnings per share is Rs.3.60 and dividend per share is Rs.0.44. How much is the growth rate assuming that the past performance will continue? Calculate the cost of equity capital.

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