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Suppose a firm has just reported an EPS of $2.50 and expects to maintain a dividend payout ratio of 40 percent. What is the firms

Suppose a firm has just reported an EPS of $2.50 and expects to maintain a dividend payout ratio of 40 percent.

What is the firms price-earnings ratio if its return on equity is 12 percent and the required return is 11.5 percent?

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