You are considering the purchase of a share of Alfa Growth, Inc. common stock. You expect to sell it at the end of one year for $92.11 per share. You will also receive a dividend of $4.98 per share at the end of the next year. If your required return on this stock is 10.49%, what is the most you would be willing to pay for Alfa Growth, Inc. common stock now?
Green company's common stock is currently selling for $75.16 per share. Last year, the company paid dividends of $1.25 per share. The projected growth at a rate of dividends for this stock is 6.24%. Which rate of return does the investor expect to receive on this stock if it is purchased?