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Madube Ltd a firm in the gas and oil industry projects an ROE of 18%. The company previously paid a dividend of R3.50 per share

Madube Ltd a firm in the gas and oil industry projects an ROE of 18%. The company previously paid a dividend of R3.50 per share for the previous financial year restricting itself to a constant retention ratio of 45%. The firms expected earnings per share are R5.50 and investors required rate of return is 12% on the stock. What is P/E ratio of the firm?

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