The common stock of NCP paid $1.25 in dividends last year. Dividends are expected to grow at an annual rate of 9.10 percent for an indefinite number of years.
a. If NCP's current market price is $27.95 per share, the stock's expected rate of return is____%. (Round to two decimal places.)
b. If your required rate of return is 11.1 percent, the value of the stock would be $ _____. (Round to the nearest cent.)
c. You should (buy or sell) the stock because the expected rate of return is ( less than or greater than) your required rate of return or the value of the stock is ( larger than or smaller than) the current market price.