Steady As She Goes, Inc., will pay a year-end dividend of $4.85 per share. Investors expect the dividend to grow at a rate of 3.6% indefinitely.

a.	If the stock currently sells for $57.74 per share, what is the expected rate of return on the stock? (Do not round intermediate calculations.)

Expected rate of return

%

b.	If the expected rate of return on the stock is 12.29%, what is the stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)