1 a) Johnson Products earned $4.34 per share last year and paid a dividend of $1.22 per share. If ROE was 14 percent, what is the sustainable growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

(b) A certain stock of theres has a beta of 1.8. If the risk-free rate of return is 2 percent and the market risk premium is 7.8 percent, what is the expected return of the stock? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)