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(Common stock valuation) Dalton Inc. has a return on equity of 12.8 percent and retains 58 percent of its earnings for reinvestment purposes. It
(Common stock valuation) Dalton Inc. has a return on equity of 12.8 percent and retains 58 percent of its earnings for reinvestment purposes. It recently paid a dividend of $3.25 and the stock is currently selling for $43. 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? a. What is the growth rate for Dalton Inc.? % (Round to two decimal places.)
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