Juggernaut Satellite Corporation earned $ 10 million for the fiscal year ending yesterday.,The firm also paid out 20% of its earnings as dividends yesterday. The firm will continue,to pay out 20% of its earnings as annual, end-of year dividends. The remaining 80,percent of earnings is retained by the company for use in projects. The company has 2,million shares of common stock outstanding. The current stock price is $85. The,historical return on equity (ROE) of 16 percent is expected to continue in the future.,What is the required rate of return on the stock?
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