Sanders, Inc., paid a $3 dividend per share last year and is expected to continue to pay out 60% of its earnings as dividends for the foreseeable future. If the firm is expected to generate a 11% return on equity in the future, and if you require a 13% return on the stock, the value of the stock is _________.

$18.00

$36.42

$49.97

$31.97

if the nominal interest rate is 6% and the inflation rate is 2%. What is the real interest rate?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Real interest rate%