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(Common stock valuation) The common stock of NCP paid $1.25 in dividends last year. Dividends are expected to grow at an annual rate of 5.80 percent for an indefinite number of years. a. If your required rate of return is 8.20 percent, what is the value of the stock for you? b. Should you make the investment? a. If your required rate of return is 8.20 percent, the value of the stock for you is $ (Round to the nearest cent.) (Measuring growth) Green Gadgets Inc. is trying to decide whether to cut its expected dividend for next year from $10 per share to $7 per share in order to have more money to invest in new projects. If it does not cut the dividend, Green Gadgets' expected rate of growth in dividends is 3 percent per year and the price of their common stock will be $95 per share. However, if it cuts its dividend, the dividend growth rate is expected to rise to 6 percent in the future. Assuming that the investor's required rate of return for Green Gadgets' stock does not change, what would you expect to happen to the price of its a. What is the investor's required rate of return for Green Gadgets' stock? % (Round to two decimal places.)