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Question 2. Chapter 7 Discussion Question 7 (p.253) The Singapore Sapphires Company is valued at $20 per share. Analysts expect that it will generate free

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Question 2. Chapter 7 Discussion Question 7 (p.253) The Singapore Sapphires Company is valued at $20 per share. Analysts expect that it will generate free cash flows to equity of $4 per share for the foreseeable future. What is the firm's implied cost of equity capital? (Hint: Assuming the company only generates single, unchanging free cash flow.)

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