(Common stock valuation) Dalton Inc. has a return on equity of 11.3 percent and retains 53 percent of its earnings for reinvestment purposes. It recently paid a dividend of $3.00 and the stock is currently selling for $41.

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 return, should you invest in the firm