(Common stockholder expected return) Alyward & Bram common stock currently sells for $23.75 per share. The company's executives anticipate a constant growth rate of 10.8 percent and an end-of-year dividend of $1.50.

a. What is your expected rate of return? _____%

b. If you require a return of 17 percent, should you purchase the stock? _____

(Common stockholder expected return) Ziercher executives anticipate a growth rate of 9 percent for the company's common stock. The stock is currently selling for $42.53 per share and pays an end-of-year dividend of $1.74. What is your expected rate of return if you purchase the stock for its current market price of $42.53?

Your expected rate of return is _____%. (Round to two decimal places.)