Steady as she goes inc will pay a year-end dividend of 310, Ask an Expert

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Steady As She Goes Inc. will pay a year-end dividend of $3.10 per share. Investors expect the dividend to grow at a rate of 5% indefinitely.

a. If the stock currently sells for $31 per share, what is the expected rate of return on the stock? (Do not round intermediate calculations. Enter your answer as a whole percent.)

b. If the expected rate of return on the stock is 17.5%, what is the stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92064418

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