The information is for Company X in the food industry. The company did not issue preferred stocks whilethe firm may have some foreign subsidiaries overseas. The industry usually has a gross profit margin such as 25% and other set-up costs are also relatively high due to the production and technology. The R&D costs are entirely reported as operating expenses according to the GAAP

Balance Sheet (in millions)

201420152016

Assets

Cash13021070

Marketable securities51200200

Accounts Receivable220350200

Inventory106210781250

Plant, Building, and Equipment (net)187012031190

Investments in affiliates0230320

Total Assets333332713230

Liabilities

Short-term debts10713030

Advances from customers121326534

Accounts payable585592357

Interest payable7529862

Tax payable147120128

Other Accrued Expenses201535

Bonds payable16281376550

Stockholders' Equity

Common stock4012011270

Additional paid-in capital71154140

Retained earning17859124

Total liabilities and equities333332713230

Income Statement(in millions)

201420152016

Net Sales492950185883

Cost of Goods Sold221521092310

Selling and General Expenses7718101059

Depreciation Expense213169484

Interest Expense397109221

Income Tax Expense275237304

Net Income105815841505

QUESTION:

What would be the possible dividend per share for 2016 of Company X? The firm has 6 million shares of stock in the market, what is the required rate of return for the stock based on shareholder's equity of 2016?