(Common stock valuation) 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 (E.) is $12, the retention ratio is 45 percent, the return on equity (ROE) is 13 percent (that is, it can eam 13 percent on reinvested eamings), and similar shares of stock sell at multiples of 6.358 times earnings per share. Questions: a. Determine the expected growth rate for dividends. b. Determine the price eamings ratio (PE). c. What is the stock price using the PE ratio valuation method? d. What is the stock price using the dividend discount model? 5.85 % (Round to two decimal places.) b. What is the price eamings ratio (PE/? 6.358 (Round to three decimal places.) c. What is the stock price using the P/E ratio valuation method? $ 76.30 (Round to the nearest cent.) d. What is the stock price using the dividend discount model? $ 76.30 (Round to the nearest cent.) e. (1) Using the dividend discount model, what would be the stock price if the company increased $66.67' (Round to the nearest cent.) retention rate to 70% (holding all else constant)? What would be the P/E ratio (PE) if the company increased its retention ratio to 70% (holding all else constant)? (Round to three decimal places.)