What is the expected rate of return on the stock

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Question - Steady As She Goes Inc. will pay a year-end dividend of $3.50 per share. Investors expect the dividend to grow at a rate of 6% indefinitely.

If the stock currently sells for $35.00 per share, what is the expected rate of return on the stock?

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

Reference no: EM132999787

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