The Sonik Corporation common stock paid a dividend of $1.00 per share last year. The company expects earnings to grow at a rate of 8% per year for teh foreseeable future.
a. what required rate of return for this stock would result in a price per share of $40?
b. if Sonik has an earnings and dividend growth rate of 11%, what required rate of return would result in a price per share of $40?