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Question 7 Sydney Ltd expects its growth in ordinary share dividends to be a very steady 4 per cent per year for the indefinite future.

Question 7 Sydney Ltd expects its growth in ordinary share dividends to be a very steady 4 per cent per year for the indefinite future. The companys share is currently selling $40, and the company just paid dividend of $3 yesterday. What is the cost of ordinary share equity for this company?

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