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Ouzo AE. is expected to pay a dividend per share next year equal to $1.00 and is forecast to have a dividend payout ratio of

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Ouzo AE. is expected to pay a dividend per share next year equal to $1.00 and is forecast to have a dividend payout ratio of 50% in perpetuity. The company is also forecast to have an ROE of 20%. The market price per share is $4 which also happens to equal the intrinsic value of equity per share, i.e., the market price is efficient. What is the implicit discount rate which makes the intrinsic equity value per share equal to market price per share? 17.50% 35.00% 10.25% 20%

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