Calculate required rate of return for the stock

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Reference no: EM131796059

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.)

Reference no: EM131796059

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