7. The capital structure of KPS Limited includes 5,00,000 equity shares of ` 10 each. The market price of equity share (cum-dividend) is ` 75 per share. The company has declared to pay dividend on equity shares @ ` 6 per share which will be paid within next three days. The company has a history of consistent growth in its dividends. It has been predicted that in the next year KPS Limited will pay dividend on its equity shares@ ` 7.59 per share. The rate of dividend growth will be maintained in foreseeable future. The cost of equity is calculated as:
Options
A36.5%
B34.5%
C37.5%
D38.5%
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