31. Next year Steady As She Goes, Inc., is expected to pay a year-end dividend of $4.35 per share. Investors expect the dividend to grow at a rate of 1.43% indefinitely.

a.	If the stock currently sells for $33.8 per share, what is the expected rate of return on the stock? (Do not round intermediate calculations.)

Expected rate of return

%

b.	If the expected rate of return on the stock is 12.621%, what is the stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock price

$

33. You believe that the Non-Stick Gum Factory will pay a dividend of $3 on its common stock next year. Thereafter, you expect dividends to grow at a rate of 2% a year in perpetuity. If you require a return of 12% on your investment, how much should you be prepared to pay for the stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)