Common stock value$$Constant growth McCracken Roofing, Inc., common stock paid a dividend of $$1\mathrm{.}06$ per

share last year. The company expects earnings and dividends to grow at a rate of $9\%$ per year for the foreseeable

future.

a$.$ What required rate of return for this stock would result in a price per share of $$28?$

b$.$ If McCracken expects both earnings and dividends to grow at an annual rate of $12\%,$ what required rate of return

would result in a price per share of $$28?$

a$.$ The required rate of return for this stock, in order to result in a price per share of $$28,$ is $\%.($Round to two

decimal places.$)$