1. An all-equity financed company distributes 80% of its earnings each year and reinvests the balance. The return on its projects is a constant 15% per annum. If the company's current market capitalization is RM1.5m and its earnings are RM125,000, what is the required rate of return for the ordinary shareholder? 9.6% 9.9% C 18.7% 19.5% B D