Question: Steady As She Goes Incorporated will pay a year - end dividend of $ 2 . 0 0 per share. Investors expect the dividend to

Steady As She Goes Incorporated will pay a year-end dividend of $2.00 per share. Investors expect the dividend to grow at a rate of 6% indefinitely.
If the stock currently sells for $20.00 per share, what is the expected rate of return on the stock?
Note: Do not round intermediate calculations. Enter your answer as a whole percent.
If the expected rate of return on the stock is 18.50%, what is the stock price?
Note: Do not round intermediate calculations. Enter your answers rounded to 2 decimal places.

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