Assume the? following: the? investor's required rate of return is 14.5 ?percent, the expected level of earnings at the end of this year ?(E1?) is ?$10?, the retention ratio is 30 ?percent, the return on equity ?(ROE?) is 14 percent? (that is, it can earn 14 percent on reinvested? earnings), and similar shares of stock sell at multiples of 6.796 times earnings per share. ?Questions: a. Determine the expected growth rate for dividends. b. Determine the price earnings ratio ?(P?/E1?). c. What is the stock price using the ?P/E ratio valuation? method? d. What is the stock price using the dividend discount? model? e. What would happen to the ?P/E ratio ?(P?/E1?) and stock price if the company increased its retention rate to 65 percent? (holding all else? constant)? What would happen to the ?P/E ratio ?(P?/E1?) and stock price if the company paid out all its earnings in the form of? dividends? f. What have you learned about the relationship between the retention rate and the ?P/E? ratios?