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What required rate of return would result in a price

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McCracken? Roofing, Inc., common stock paid a dividend of ?$1.20 per share last year. The company expects earnings and dividends to grow at a rate of 5?% per year for the foreseeable future.  

Problem 1: What required rate of return for this stock would result in a price per share of ?$28??

Problem 2: If McCracken expects both earnings and dividends to grow at an annual rate of 10?%, what required rate of return would result in a price per share of ?$28??

Reference no: EM132915518

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