Common stock valueConstant growthMcCracken Roofing, Inc., common stock paid a dividend of $1.15 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 $30?

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 $30?

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Part 1

a. The required rate of return for this stock, in order to result in a price per share of $30, is enter your response here%. (Round to two decimal places.)

Part 2

b. The required rate of return for this stock, in order to result in a price per share of $30, is enter your response here%. (Round to two decimal places.)