(Common stock valuation) Wayne, Inc.'s outstanding common stock is currently selling in the market for $18. Dividends of $1.72 per share were paid last year, return on equity is 33 percent, and its retention rate is 22 percent. a. What is the value of the stock to you, given a required rate of return of 16 percent? b. Should you purchase this stock? a. Given a required rate of return of 16 percent, the value of the stock to you is S (Round to the nearest cent.) b. Should you purchase this stock? (Select from the drop-down menus.) You V purchase the stock because your expected value of the stock is greater than the current market price, indicating that the stock would be currently in the market