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You are provided with the following information for the ABC company: The current price of ABC's shares is 5.30. A dividend has just been paid

You are provided with the following information for the ABC company:

The current price of ABC's shares is 5.30.

A dividend has just been paid of 0.15. It is anticipated that next year the dividend will be 6% higher and that dividends will then grow at a rate of 9% per annum from then on.

Calculate the cost of equity capital for ABC.

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