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  • 19-03-2024
  • Business
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Float Ltd has a current share price of R22, a dividend yield of 5%, and an expected growth rate in dividends of 12%. The company wishes to issue new shares with floatation costs of R2 per share. What is the cost of equity in respect of the new share?
a) 17.0%
b) 8.0%
c) 18.5%
d) 17.5%

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