$8-16.($Common stock valuation$)$ The common stock of Hyundai Motors paid $$1\mathrm{.}65$ in dividends last year. Dividends are expected to grow at a $7$ percent annual rate for an indefinite number of years.

a$.$ If Hyundai's current market price is $$25\mathrm{.}50$ per share, what is the stock's expected rate of return?

b$.$ If your required rate of return is $12\mathrm{.}5$ percent, what is the value of the stock for you? c$.$ Should you make investment?