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Steady As She Goes Inc will pay a year-end dividend of 280 per share Investors expect the dividend to grow at a rate of 4 indefinitely a If the stock currently sells for 28 per share what

Steady As She Goes, Inc., will pay a year-end dividend of $2.80 per share. Investors expect the dividend to grow at a rate of 4% indefinitely.

a.

If the stock currently sells for $28 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 16.5%, what is the stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Stock price $

Aug 27 2020 View more View Less

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