Wayne, Inc.$\text{'}$s outstanding common stock is currently selling in the market for $$26.$ Dividends of $$2\mathrm{.}65$ per share were paid last year, return on equity is $25$ percent, and its retention rate is $23$ percent.

a$.$What is the value of the stock to you, given a required rate of return of $18$ percent?

b$.$Should you purchase this stock?

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Part $1$

a$.$Given a required rate of return of $18$ percent, the value of the stock to you is $

$$

enter your response here. $($Round to the nearest cent.$)$