= Homework: MT217M5 Lab Assessment Question 16, P10-13 (si. Part 1 of 9 (Common stock valuation) Assume the following: . the investor's required rate of return is 14.5 percent. . the expected level of earnings at the end of this year (E, ) is $6. the retention ratio is 45 percent, the return on equity (ROE) is 14 percent (that is, it can earn 14 percent on reinvested earnings), and similar shares of stock sell at multiples of 6.707 times earnings per share. Questions: a. Determine the expected growth rate for dividends. b. Determine the price earnings ratio (PE). c. What is the stock price using the P/E ratio valuation method? d. What is the stock price using the dividend discount model? e. What would happen to the P/E ratio (PE) and stock price if the company increased its retention rate to 60 percent (holding all else consta form of dividends? Question 2. De expected growth rate for vidende Demeter (PC, c. What is the stone Prato in mod it. What is the honored decourt oder What we hace to the Pandok price the company incremento percentage What when to the land of contact food When you are about the top between Bertion rate and the BE