Top hedge fund manager Sally Buffit believes that a stock with the same market risk as the S&P 500 will sell at year-end at a price of $49. The stock will pay a dividend at year-end of $3.00. Assume that risk-free Treasury securities currently offer an interest rate of 2.1%.

Average rates of return on Treasury bills, government bonds, and common stocks, 19002020 (figures in percent per year) are as follows.

Portfolio	Average Annual Rate of Return (%)	Average Premium (Extra return versus Treasury bills) (%)
Treasury bills	3.7
Treasury bonds	5.4	1.7
Common stocks	11.5	7.7

What is the discount rate on the stock?

Note: Enter your answer as a percent rounded to 2 decimal places.

What price should she be willing to pay for the stock today?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.