(Common stock valuation) Herrera Motor Inc. paid a $3.25 dividend last year. At a constant growth rate of 5 percent, what is the value of the common stock if the investors require a rate of return of 23 percent?

The value of the Herrera Motor common stock is $_____. (Round to the nearest cent.)

Schlumberger is selling for $61.89 per share and paid a dividend of $1.21 last year. The dividend is expected to grow at 3 percent indefinitely. What is the stock's expected rate of return?

The stock's expected rate of return is _____%. (Round to two decimal places.)