What is the growth rate for dalton inc


Problem

Common stock valuation) Dalton Inc. has a return on equity of 11.5 percent and retains 58 percent of its earnings for reinvestment purposes. It recently paid a dividend of $2.75 and the stock is currently selling for $39.

1) What is the growth rate for Dalton Inc.?
2) What is the expected return for Dalton's stock?
3) If you require a 13 percent return, should you invest in the firm?

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Financial Accounting: What is the growth rate for dalton inc
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