Question: Common stock valuelong -Constant growth McCracken? Roofing, Inc., common stock paid a dividend of ?$1.43 per share last year. The company expects earnings and dividends to grow at a rate of 8?% per year for the foreseeable future.
a. What required rate of return for this stock would result in a price per share of $22?
b. If McCracken expects both earnings and dividends to grow at an annual rate of 12?%, what required rate of return would result in a price per share of $22??
a. The required rate of return for this stock, in order to result in a price per share of ?$22is $_______?%. (Round to two decimal? places.)