$($Valuing common$$ stock$)$

Wayne comma Inc.Wayne,$$Inc$.\text{'}$s

outstanding common stock is currently selling in the market for

$$$$2121.$

Dividends of

$ $2\mathrm{.}68$$$2\mathrm{.}68$

per share were paid last$$ year, return on equity is

$1818$

$$percent$,$ and its retention rate is

$2525$

percent.

a$.$ What is the value of the stock to$$ you, given a required rate of return of

$1919$

$$percent$?$

b$.$ Should you purchase this$$ stock?

Question content area bottom

Part $1$

a$.$

Given

a required rate of return of

$1919$

$$percent$,$ the value of the stock to you is

$$$enter your response here.

$($Round to the nearest$$ cent.$)$