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 $54. The stock will pay a dividend at year-end of $3.00. Assume that risk-free Treasury securities currently offer an inter 2.4% Average rates of return on Treasury bills, government bonds, and common stocks, 1900-2017 (figures in percent per ye follows. Average Premium (Extra return versus Treasury bills) () Portfolio Treasury bills Treasury bonds Common stocks Average Annual Rate of Return (1) 3.8 5.3 11.5 1.5 7.7 a. What is the discount rate on the stock? (Enter your answer as a percent rounded to 2 decimal places.) Discount rate b. What price should she be willing to pay for the stock today? (Do not round intermediate calculations. Round your an decimal places.) Stock price