Steady As She Goes Inc. will pay a year-end dividend of $2.80 per share. Investors expect the dividend to grow at a rate of 4% indefinitely.

a. if the stock currently sells for $28 per share, what is the expected rate of return on the stock? (Do not round intermediate calculations. Enter your answer as a whole percent.) expected rate of return ______%

b. if the expected rate of return on the stock is 16.5%, what is the stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) stock price $______________