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(Common stockholder expected retum) Bennett, Inc. common stock currently sells for $23.25 per share. The company's executives anticipate a constant growth rate of 10.5 percent

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(Common stockholder expected retum) Bennett, Inc. common stock currently sells for $23.25 per share. The company's executives anticipate a constant growth rate of 10.5 percent and an end-of-year dividend of $2.75. a. What is your expected rate of return if you buy the stock for $2325 ? b. If you require a retum of 16 percent, should you purchase the stock? a. If you buy the stock for $23.25, your expected rate of return is \%. (Round to two decimal places) b. If you require a return of 16 percent, the value of the stock for you is $ (Round to the nearest cent) If you require a return of 16 percent, you should the stock because the expected rate of return is your required rate of return or the intrinsic value of the stock is menus)

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