Question: ( Common stockholder expected return ) Alyward& Bram common stock currently sells for $ 24.75 $24.75 per share. Thecompany's executives anticipate a constant growth rate

(Common stockholder expected return) Alyward& Bram common stock currently sells for $ 24.75

$24.75 per share. Thecompany's executives anticipate a constant growth rate of 11.3 percent and anend-of-year dividend of $ 1.50

a. What is your expected rate ofreturn?

b. If you require a return of 17 percent, should you purchase thestock?

a. If you buy the stock for $ 24.75 , your expected rate of return is____%. (Round to two decimalplaces.)

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