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Dalton Inc. has a return on equity of 11.4 percent and retains 56 percent of its...

Dalton Inc. has a return on equity of 11.4 percent and retains 56 percent of its earnings for reinvestment purposes. It recently paid a dividend of ​$2.75 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?

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