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Bush plc has just announced earnings of 50 million. Its pay- out ratio is 20%. Bush has 25 million shares in issue and its PE

Bush plc has just announced earnings of 50 million. Its pay- out ratio is 20%. Bush has 25 million shares in issue and its PE ratio is 4. The growth in dividends is projected at 3% indefinitely. What is the cost of equity capital of Bush?

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