Mitchell, Inc., is expected to maintain a constant 5.7 percent growth rate in its dividends, indefinitely.
If the company has a dividend yield of 4.2 percent, what is the required return on the company’s stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Required return ?%
If you want a return of 12 percent, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Current stock price $ ?