Common stock value$-$Constant growth McCracken Roofing, Inc., common stock paid a dividend of $$1\mathrm{.}29$ per share last year. The company expects earnings and dividends to grow at a rate of $7\%$ per year for the foreseeable future.

a$.$ What required rate of return for this stock would result in a price per share of $$20?$

b$.$ If McCracken expects both earnings and dividends to grow at an annual rate of $11\%,$ what required rate of return would result in a price per share of $$20?$

a$.$ The required rate of return for this stock, in order to result in a price per share of $$20,$ is $5\mathrm{.}11\%.($Round to two decimal places.$)$