The common stock of NCP paid $1.25 in dividends last year. Dividends are expected to grow at an annual rate of 8.90 percent for an indefinite number of years.

a. IfNCP's current market price is $21.17 pershare, what is thestock's expected rate ofreturn? Round to two decimalplaces.)

b. If your required rate of return is 10.9 percent, what is the value of the stock foryou? Round to two decimalplaces.)

c. should you (buy/sell ) the stock because the expected rate of return is (less than/greater than) your required rate of return or the value of the stock is (larger than/smaller than) the current market price.