MacroSoft paid dividends per share of $ 3.56 in the most recent year, and dividends are expected to grow 2.0% a year forever. The stock has a beta of 1.21, the expected return on the stock market is 8.00% and the risk-free rate is 2.50%.
A. What is the value per share, using the Gordon Growth Model?
B. The stock is trading for exist45.00 per share. What is the growth rate implied by this price?