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ABC stock sells today for $168.00 per share. The next annual dividend (per share) will be $8.00. If ABC return on equity is 17.00% and

ABC stock sells today for $168.00 per share. The next annual dividend (per share) will be $8.00. If ABC return on equity is 17.00% and if it reinvests 78.00% of its earnings into its business, what is the return that investors are demanding on ABC?

A) 25.03%

B) 21.76%

C) 13.26%

D) 18.02%

E) 11.53%

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