An analyst gathered the following information about company XYZ and the market (JSE): Current market price per share of common stock: $28.00 Most recent dividend per share paid on common stock ( D0): $2.00 Expected dividend payout rate: 40% Expected return on equity (ROE): 15% Covariance between XYZ and the JSE: 3 The standard deviation of the JSE index 1.2 Expected rate of return on the JSE all-share index: 14% The risk-free rate of return: 5% Using the Capital Asset Pricing Model (CAPM) approach, the required rate of return for the company is closest to:

		15%
		33.17%
		22.01%.
		16.47%.
		23.75%