Rate of return-what is the stock price

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Rate of Return. Steady As She Goes Inc. will pay a year-end dividend of $3 per share. Investors expect the dividend to grow at a rate of 4% indefinitely. (LO7-2 and LO7-3) a. If the stock currently sells for $30 per share, what is the expected rate of return on the stock? b. If the expected rate of return on the stock is 16.5%, what is the stock price?

Reference no: EM131182603

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