Question: (Common stock valuation) Dalton Inc. has a return on equity of 12.6 percent and retains 55 percent of its earnings for reinvestment purposes. It recently

(Common stock valuation) Dalton Inc. has a return on equity of 12.6 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 $39. a. What is the growth rate for Dalton Inc? b. What is the expected return for Dalton's stock? c. If you require a 12 percent return, should you invest in the firm? a. What is the growth rate for Dalton Inc? \% (Round to two decimal places)

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