Wayne, Inc.'s outstanding common stock is currently selling in the market for ​$33. Dividends of ​$2.84 per share were paid last​ year, return on equity is 32
​percent, and its retention rate is 23 percent.
a. What is the value of the stock to​ you, given a required rate of return of 18 ​percent?
b. Should you purchase this​ stock?

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