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Stockholders of Dogs R Us Pet Supply expect a 11% rate of return on their stock. Management has historically been generating an ROE of 12.5%,

Stockholders of Dogs R Us Pet Supply expect a 11% rate of return on their stock. Management has historically been generating an ROE of 12.5%, but now believes that future ROE will be 12% for the next years. Given this, the firm's optimal dividend payout ratio is now ______.

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