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Usually the cost of capital for a company in growth phase is higher than that of a mature company even if mature company pays dividends
Usually the cost of capital for a company in growth phase is higher than that of a mature company even if mature company pays dividends whereas a growth company does not pay any dividends. Your task is to explain this using the DCF formula mentioning the impact of dividend payment (mature company) versus the absence of dividends (growth company) in your analysis.
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