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Steady As She Goes, Inc., will pay a year-end dividend of $2.4 per share. Investors expect the dividend to grow at a rate of

 

Steady As She Goes, Inc., will pay a year-end dividend of $2.4 per share. Investors expect the dividend to grow at a rate of 4.6 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 15.9 percent, what is the stock price? (Round your answer to the nearest cent.) The stock price $

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