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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%
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 $______________
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