Suppose a firm expects EPS of $1.50 for the end of the period and expects...
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Suppose a firm expects EPS of $1.50 for the end of the period and expects to maintain a dividend payout ratio of 60 percent. If the firm's price-earnings ratio is 7.8, and its return on equity is 10 percent, what is its required rate of return? (Please choose the closest answer) O a. 10.7 percent O b. 9 percent O c. 11.7 percent O d. 7.7 percent O e. 9.7 percent
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