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The market capitalization rate (required return) on the stock of SMBC Company is 10%. Its expected ROE is 13%, and its expected EPS is $8.

The market capitalization rate (required return) on the stock of SMBC Company is 10%. Its expected ROE is 13%, and its expected EPS is $8. The firm's plowback ratio is 69%. What should be the firm's P/E ratio?

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