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The L - S Mining Company is expected to pay a dividend of $ 8 per share at the end of year 1 ( D

The L-S Mining Company is expected to pay a dividend of $8 per share at the end of year 1(D1) and the dividends are expected to grow at a constant rate of 7% forever. If the current price of the stock is $32 per share, calculate the expected return or the cost of equity capital for the firm.

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