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( Common stock valuation ) Wayne, Inc. ' s outstanding common stock is currently selling in the market for $ 3 7 . Dividends of

(Common stock valuation) Wayne, Inc.'s outstanding common stock is currently selling in the market for $37. Dividends of $2.51 per share were paid last year, return on equity is 27 percent, and its retention rate is 25 percent.
a. What is the value of the stock to you, given a required rate of return of 15 percent?
b. Should you purchase this stock?
a. Given a required rate of return of 15 percent, the value of the stock to you is $ (Round to the nearest cent.)
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