Common stockholder expected return) Alyward & Bram common stock currently sells for $ 23.75 per share. The company's executives anticipate a constant growth rate of 8.1 percent and an end-of-year dividend of $ 1.75. a. What is your expected rate of return? b. If you require a return of 18 percent, should you purchase the stock?

a. If you buy the stock for $ 23.75, your expected rate of return is _____%. (Round to two decimal places.)

b. If you require a return of 18 percent, the value of the stock for you is $ _____. (Round to the nearest cent.)

If you require a return of 18 percent, you should ______(sell/ buy) the stock because the expected rate of return is ________ (less than, greater than) your required rate of return or the intrinsic value of the stock is ________ (greater than, less than) the current market price.

(Common stock valuation) Sanford common stock is expected to pay $1.75 in dividends next year, and the market price is projected to be $50.95 per share by year-end. If investors require a rate of return of 13 percent, what is the current value of the stock? The current value of the stock is $___________. (Round to the nearest cent.)