3) The PDQ Company's common stock is expected to pay a $2.00 dividend in the coming year. a) If investors require a 17% return and the growth rate in dividends is expected to be 8%, what will the market price of the stock be?

b) Is it TRUE or FALSE that Common Stock investors receive their return in two ways: the opportunity to participate in price appreciation and the potential to receive cash dividends. Explain your answer.