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Cost of capital

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26 December 2012 Please help me out for this problem
" The share of a chemical company are selling at Rs. 20 per share. The firm had paid dividend at Rs. 2 per share last year. The estimated growth of company is approximately 5% per year. Determine the cost of equity capital of the company. "
Thanks in advance....

26 December 2012 ke = (d/p*100)+ g

= (2/20*100)+5

= 15%



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