Netflex Corp. is expected to have earnings per share next year (EPS) of $0.12. Analysts expect Netflex Corp's return on equity (ROE) will equal 12% in perpetuity. It is also expected that the company's dividend payout ratio will be equal to 50% in perpetuity. Under the dividend discount model and assuming the intrinsic equity value is equal to the book value of equity, the required rate of return on equity, re, must be equal to: 6% 24% 12% 1.2%