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Bergman Corp. has experienced zero growth over the last seven years, paying an annual dividend of $1.95 per share. Investors generally expect this performance to

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Bergman Corp. has experienced zero growth over the last seven years, paying an annual dividend of $1.95 per share. Investors generally expect this performance to continue. Bergman stock is currently selling for $24.39. The risk-tree rate Is 3.5%, and Bergman's beta is 1.3. a. Calculate the return investors require on Bergman's stock. Round the answer to two decimal places. b. Calculate the market return. Round the answer to two decimal places. Suppose you think Bergman is about to announce plans to grow at 2.5% into the foreseeable future. you also believe investors will accept that prediction and continue to require the same return on its stock. How much should you be willing to pay for a share of Bergman s stock

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