(Common stock valuation) Assume the following: - the investor's required rate of return is 15 percent, - the expected level of earnings at the end of this year (E1) is $14, - the retention ratio is 40 percent, - the return on equity (ROE) is 15 percent (that is, it can earn 15 percent on reinvested earnings), and - similar shares of stock sell at multiples of 6.666 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? f. What have you learned about the relationship between the retention rate and the P/E ratios