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Soju Ltd is currently trading at $39, and recently paid an annual dividend of $4.5. If it is expected to pay annual dividends and maintain
Soju Ltd is currently trading at $39, and recently paid an annual dividend of $4.5. If it is expected to pay annual dividends and maintain a retention ratio of 30% and a ROE of 8% (annually), what is the required rate of return per year based on the market price?
a. 13.94%
b. 14.22%
c. 11.54%
d. 14.55%
e. 11.82%
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