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The shares of a manufacturing company are selling at rupees 2 0 per share. The firm paid dividends at a rate of 2 rupees per

The shares of a manufacturing company are selling at rupees

20

per share. The firm paid dividends at a rate of

2

rupees per share last year. The estimated growth of the company is approximately

5 %

per share. Determine the cost of equity capital of the company.

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