Now assume that Shaffer's Recliners has earnings per share (EPS) of$1.89, has 750,000 common shares outstanding, and has recently paid a dividend of$0.65 per share. Additionally, the firm has generated a net income of$1,417,500 and has common shareholders' equity of$6,000,000 (book value). You believe the firm is in a constant state of growth, and your required rate of return for investments of this risk level is 18%. The firm's common stock is currently trading for$45 per share. Based upon this information, would you be willing to purchase shares of common stock in the firm? Why or why not? Use both the present value of cash flows model and the free cash flow (FCF) approach to determine your answer. The firm's currentFCFis$109,237. Use the firm's weight average cost of capital, which is currently at 15.83%, as the appropriate discount rate.

I see all the necessary information and the formula to solve the question. However, I'm having issues in finding the right numbers to put in the formula to solve the question.Which is Expected rate of return on equity = (Dividend expected/Price per share) + growth rate