What is the expected rate of return on the stock

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Reference no: EM131965164

Steady as she goes inc. will pay a year end dividend of 2.30 per share. Investors expect the dividend to grow at a rate of 6% indefinitely.

a. if the stock currently sells for $23.00 per share, what is the expected rate of return on the stock?

b. If the expected rate of return on the stock is 18.50%, what is the stock price?

Reference no: EM131965164

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