XYZ Inc. has expected earnings over the next year of $2/share (E1=2). the company is expected to maintain an earnings retention rate of 40%, i.e., 60% of earnings are expected to be [aid out as dividends every year. The company has a beta of 1.5, the risk-free rate is 4%, and the market risk premium is also 4%. If the current price of the stock is $16/share, what is the implied ROE