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Dalton Inc. has a return on equity of 12.1 percent and retains 55 percent of its earnings for reinvestment purposes. It recently paid a dividend
Dalton Inc. has a return on equity of 12.1 percent and retains 55 percent of its earnings for reinvestment purposes. It recently paid a dividend of $3.00 and the stock is currently selling for $44. a. What is the growth rate for Dalton Inc.? b. What is the expected return for Dalton's stock? c. If you require a 14 percent return should you invest in the firm? a. What is the growth rate for Dalton Inc.? %
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