rate of return

(Common stockholder expected return) Bennett, Ing. common stock currently sells for $21.50 per share. The company's executives anticipate onstant growth rate of 8.9 percent and an end-of-year dividend of $1.25. a. What is your expected rate of return if you buy the stock for $21.502 b. If you require a return of 17 percent, should you purchase the stock? a. If you buy the stock for $21.50, your expected rate of return is % (Round to two decimal places.)