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A company has a dividend retention ratio of 60%, dividends are expected to grow by 3% per annum, and the investors' required rate of return

A company has a dividend retention ratio of 60%, dividends are expected to grow by 3% per annum, and the investors' required rate of return is 8%. The theoretical P/E ratio is:

Group of answer choices

A. 8.0.

B. 5.0.

C. 12.5.

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