Bates Inc. pays a dividend of $1.50 and is currently selling for $37.65. If investors require a return of 10 percent on their investment from buying Bates stock, what growth rate would Bates Inc. have to provide the investors?_______________ (Round to two decimal places.)

Herrera Motor Inc. paid a $2.50 dividend last year. At a constant growth rate of 6 percent, what is the value of the common stock if the investors require a rate of return of 19 percent?___________ (Round to the nearest cent.)