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Steady As She Goes, Inc., will pay a year-end dividend of $2 per share. Investors expect the dividend to grow at a rate of 5
Steady As She Goes, Inc., will pay a year-end dividend of $2 per share. Investors expect the dividend to grow at a rate of 5 percent indefinitely. a. If the stock currently sells for $40 per share, what is the expected rate of return on the stock? (Round your answer to 2 decimal places.) The expected rate of return on the stock % b. If the expected rate of return on the stock is 15.5 percent, what is the stock price?
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