Wayne, Inc.'s outstanding common stock is currently selling in the market for $54. Dividends of $1.99 per share were paid last year, return on equity is 32 percent, and its retention rate is 28 percent.

a.What is the value of the stock to you, given a required rate of return of 14 percent?

b.Should you purchase this stock?

c. Given a required rate of return of 14 percent, the value of the stock to you is ($)?