Suppose a firm has just reported an EPS of $2.50 and expects to maintain a dividend payout ratio of 40%.If the firm's price-earnings ratio is 9.3 and its return on equity is 12%, what is its required rate of return?
A) 13.80%
B) 11.5%
C) 13.35%
D) 12%
Correct Answer:
Verified
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