Question: Please help! Steady As She Goes Inc. will pay a year-end dividend of $3.40 per share. Investors expect the dividend to grow at a rate

Please help! Steady As She Goes Inc. will pay a year-end dividend Please help!

Steady As She Goes Inc. will pay a year-end dividend of $3.40 per share. Investors expect the dividend to grow at a rate of 5% indefinitely. a. If the stock currently sells for $34.00 per share, what is the expected rate of return on the stock? (Do not round intermediate calculations. Enter your answer as a whole percent.) Answer is complete and correct. Expected rate of return 15 % b. If the expected rate of return on the stock is 17.50%, what is the stock price? (Do not round intermediate calculations. Enter your answers rounded to 2 decimal places.) > Answer is complete but not entirely correct. Stock price $ 39.95 X

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