( Round to two decimal places)

Common stock value Constant growth McCracken Roofing, Inc., common stock paid a dividend of $1.36 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