Carlson Enterprises' common stock dividend is expected to grow at 2% per year. The dividend recently paid was $0.43 per share, and the required return is 10%.

a. What is the estimated value of the common stock?

b. If the value of a common stock was $90 per share and dividends were recently $2.59, but expected to grow at 3%

per year, what would be the required rate of return?

a. What is the estimated value of the common stock? The value is $___ (Round to the nearest cent.)

b. If the value of a common stock was $90 per share and dividends were recently $2.59, but expected to grow at 3%

per year, what would be the required rate of return? The required return is ___%. (Round to two decimal places.)