1. Describe and interpret the assumptions related to the problem.
2. Apply the appropriate mathematical model to solve the problem.
3. Calculate the correct solution to the problem. Finkle-McGraw Corp. just paid a dividend today of $1.50 per share. The dividend is expected to grow at a constant rate of 6% per year. If Finkle-McGraw Corp. stock is selling for $48.00 per share, what is the stockholders' expected rate of return? Submit your answer as a percentage and round to two decimal places.