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(Common stock valuation) Wayne, Inc.'s outstanding common stock is currently selling in the market for $31. Dividends of $2.14 per share were paid last year,

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(Common stock valuation) Wayne, Inc.'s outstanding common stock is currently selling in the market for $31. Dividends of $2.14 per share were paid last year, return on equity is 24 percent, and its retention rate is 26 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

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