What is the cost of the company equity share capital

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Reference no: EM132757399

Problem 1: The current market value of shares in Segontium Co is £2.50 and the most recent dividend was £0.20 per share. The annual growth rate in dividends is expected to be 5%. What is the cost of the company's equity share capital?

A 3.4%

B 7.6%

C 13.0%

D 13.4%

Reference no: EM132757399

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