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A share is expected to pay a dividend of $2.37 next year, and this dividend is expected to grow at the rate of 3% in

A share is expected to pay a dividend of $2.37 next year, and this dividend is expected to grow at the rate of 3% in perpetuity. If the current price of the share is $64.44, what is the cost of ordinary shares for the firm?

Select one:

a. 6.68%

b. 8.38%

c. 6.79%

d. 5.63%

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