(Common stock valuation) Dalton Inc. has a return on equity of

11.6 percent and retains

57 percent of its earnings for reinvestment purposes. It recently paid a dividend of $

3.50 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

13 percent return, should you invest in the firm?

% (Round to two decimal places.)