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Using the following information: 1. The investors required rate of return is 15% 2. The expected level of earnings at the end of this year

Using the following information:
1. The investors required rate of return is 15%
2. The expected level of earnings at the end of this year (E1) of $5.00
3. The retention ratio is 65%
4. The Return on Equity (ROE) is 13%
a. Determine the expected growth rate for dividends
b. Determine the price earnings ratio
c. What is the stock price using the P/E ratio valuation method?
d. What is the stock price using the dividend discount model?

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