10-13. (Valuing common stock) Assume the following: The investor's required rate of return is 13.5 percent. The expected level of earnings at the end of this year (Ej) is $6.00. The retention ratio is 50 percent. The return on equity (ROE) is 15 percent (that is, it can earn 15 percent on rein- vested earnings). Similar shares of stock sell at multiples of 16.667 times earnings per share. a. Determine the expected growth rate for dividends. b. Determine the pricelearnings ratio (PIE) using Equation (10-5a). c. What is the stock price using the P/E ratio valuation method? d. What is the stock price using the dividend discount model