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ILLUSTRATION 21. Compute the equity cost of capital of Pawan Airways Ltd. in the following situations : (a) Its equity share is selling at 50
ILLUSTRATION 21. Compute the equity cost of capital of Pawan Airways Ltd. in the following situations : (a) Its equity share is selling at 50 and paying a dividend of 6 per share, which is expected to be continued in future also. (b) The same equity share (i.e., mentioned in situation ' a '), if dividends are expected to grow at the rate of 5% per annum
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