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(Common stock valuation) Dalton Inc. has a retum on equity of 13.1 percent and retains 52 percent of its earnings for reinvestment purposes. It recently

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(Common stock valuation) Dalton Inc. has a retum on equity of 13.1 percent and retains 52 percent of its earnings for reinvestment purposes. It recently paid a dividend of $3.25 and the stock is currently selling for $39 a. What is the growth rate for Dalton Inc.? b. What is the expected return for Dalton's stock? c. If you require a 14 percent retum, should you invest in the frm? What is the growth rate for Dalton Inc.? I (Round to two decimal places) b. What is the expected return for Dalton's stock? D* (Round to two decimal places.) c. If you require a 14 percent retum, should you invest in the firma (Select from the drop down menu.)

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