Common stock value-constant growth

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Reference no: EM131328978

Common stock value—Constant growth

McCracken? Roofing, Inc., common stock paid a dividend of ?$1.35 per share last year. The company expects earnings and dividends to grow at a rate of 6?% per year for the foreseeable future.

a.What required rate of return for this stock would result in a price per share of? $ 28??

b. If McCracken expects both earnings and dividends to grow at an annual rate of11?%, what required rate of return would result in a price per share of ?$28??

a. The required rate of return for this? stock, in order to result in a price per share of ?$28?, is ?(Round to two decimal? places.)

b. The required rate of return for this? stock, in order to result in a price per share of $28?, is. ?(Round to two decimal? places.)

Reference no: EM131328978

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