(Common stock valuation) Herrera Motor Inc. paid a $3.50 dividend last year. At a constant growth rate of 5 percent, what is the value of the common stock if the investors require a rate of return of 20 percent? The value of Herrera Motor common stock is $ . (Round to the nearest cent.) (Measuring growth) Septian Inc.'s return on equity is 21 percent, and the management plans to retain 64 percent of earnings for investment purposes. What will be the firm's growth rate? The firm's growth rate will be %. (Round to two decimal places.)