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Midwest Services Inc. expects to pay shareholders $7.20 per share next period. The firm will pay 50% of earnings as dividends going forward, and the

Midwest Services Inc. expects to pay shareholders $7.20 per share next period. The firm will pay 50% of earnings as dividends going forward, and the firms return on equity (ROE) will remain stable at 10%. The current stock price is $200. What is the estimated cost of equity capital?

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