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Westmount Drilling Services shares are currently trading at $48.50 with a justified P/E of 19.4. If the dividend payout ratio remains at 50% and the
Westmount Drilling Services shares are currently trading at $48.50 with a justified P/E of 19.4. If the dividend payout ratio remains at 50% and the dividend growth rate is a constant 5% what is the required rate of return?
( A) 6.0%
(B) 11.4%
(C)7.6%
(D)9.2%
PLEASE ANSWER WITH EXPLAINATION!!
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