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The shares of the business are selling at R10 per share. The firm had paid a dividend @ R1 per share last year. The estimated

The shares of the business are selling at R10 per share. The firm had paid a dividend @ R1 per share last year. The estimated growth of the company is approximately 5% per year.

Whats the cost of equity of the company?

Whats the estimated market price of the equity share if the anticipated growth rate of the firm rises to 8%. (Marks are 13)

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