(Common stock valuation) Dalton Inc. has a return on equity of 10.9 percent and retains 55 percent of its earnings for reinvestment purposes. It recently paid a dividend of $3.75 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? _____

(Common stock valuation) Mosser Corporation's common stock paid $1.48 in dividends last year and is expected to grow indefinitely at an annual 6 percent rate. What is the value of the stock if you require a return of 14 percent?

The value of the Mosser Corporation's common stock is $_____. (Round to the nearest cent.)