Question: question 20 (Marks: 2) suppose a firm has 3 billion shares outstanding and just reported a net income of $1.5 billion. The lirm expects to

question 20 (Marks: 2) suppose a firm has 3 billion shares outstanding and just reported a net income of $1.5 billion. The lirm expects to maintain a dividend payout ratio of 40 percent on its eatninge. If the firm's price-earnings ratio is 20 , its leverage ratio is 4 and its return on equity is 7 percent, what is its required rate of return on equity? (Please choose the closest answer) Select one: a. 6.2% b. 2.2% c. 6.3% d. 2% e. 4.8% f. 4.9% 8. 5.9%

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