What is the growth rate for Dalton Inc

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Question - Dalton Inc. has a return on equity of 10.5 percent and retains 52 percent of its earnings for reinvestment purposes. It recently paid a dividend of $3.50 and the stock is currently selling for $40.

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?

Reference no: EM132959741

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