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A mining company, NTC, wants to calculate its cost of equity capital. The companys CFO has collected the following information: The companys current stock price
A mining company, NTC, wants to calculate its cost of equity capital. The companys CFO has collected the following information: The companys current stock price is $32 per share. The company has very recently paid a dividend of $2 per share. The dividend is expected to grow at a constant rate of 6% per year indefinitely. The companys corporate tax rate is 40%. What is the NTCs cost of equity capital?
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