Dalton Inc. has a return on equity of 12.2 percent and retains 54 percent of its earnings for reinvestment purposes. It recently paid a dividend of $3.75 and the stock is currently selling for $41.

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? (Yes/No)