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The Billy Ice Cream Company pays a constant dividend. Last year, the dividend yield was 4.0 percent when the stock was selling for $16 a

The Billy Ice Cream Company pays a constant dividend. Last year, the dividend yield was 4.0 percent when the stock was selling for $16 a share.

a) What must the stock price be today if the market currently requires a 4.3 percent dividend yield on this stock?

b) If the total required return of this stock equals 8.9%, what should investors require as growth rate?

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