(Common stock valuation) Assume the following: - the investor's required rate of retum is 12 percent, - the expected level of earnings at the end of this year \\( \\left(E_{1}\ ight) \\) is \\( \\$ 10 \\), - the retention ratio is \\( \\mathbf{4 5} \\) percent, - the retum on equity ( \\( R O E \\) ) is 16 percent (that is, it can earn 16 percent on reinvested eamings), and - similar shares of stock sell at multiples of 11.458 times earnings per share. Questions: a. Determine the expected growth rate for dividends. b. Determine the price earnings ratio \\( \\left(P / E_{1}\ ight) \\). c. What is the stock price using the P/E ratio valuation method? d. What is the stock orice usina the dividend discount model