Common stock? valuation) ?Wayne, Inc.'s outstanding common stock is currently selling in the market for ?$38. Dividends of ?$3.17 per share were paid last? year, return on equity is 33 ?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?