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FINANCE 370-Suppose a firm’s price/earnings ratio is 10. It expects to pay a dividend of $1.20

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June 8th, 2024

Suppose a firm’s price/earnings ratio is 10. It expects to pay a dividend of $1.20 per share to maintain a 60 percent payout ratio.What is the firm’s required return if its return on equity is 13.5 percent?

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