Dalton Inc. has a return on equity of 11.1 percent and retains 54 percent of its earnings for reinvestment purposes. It recently paid a dividend of ?$ 3.50 and the stock is currently selling for ?$ 38.
a. What is the growth rate for Dalton? Inc.?
b. What is the expected return for? Dalton's stock?
c. If you require a 13 percent? return, should you invest in the? firm?