# If the expected rate of return on the stock is 16.5 percent, what is the stock price?

Rate of Return. Steady As She Goes, Inc., will pay a year-end dividend of $3 per share. Investors expect the dividend to grow at a rate of 4 percent indefinitely

If the stock currently sells for $30 per share, what is the expected rate of return on the stock?

If the expected rate of return on the stock is 16.5 percent, what is the stock price?

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If the stock currently sells for $30 per share, what is the expected rate of return on the stock?

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The computation is shown for you (no calculator or excel).

$2.19