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You buy a share of The Ludwig Corporation stock for $18.70. You expect it to...

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You buy a share of The Ludwig Corporation stock for $18.70. You expect it to pay dividends of $1.02. $1.0710, and $1.1246 in Years 1, 2 and 3, respectively, and you expect to set it at a price of $21.65 at the end of 3 years, a. Calculate the growth rate in dividends. Round your answer to two decimal places b. Calculate the expected dividend yiel. Round your answer to two decimal places. % c. Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of retum. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of retum equal to the expected return)? Do not round Intermediate calculations, Round your answer to two decimal places. Check My Work 0 Problem 7-21 Return on Common Stock) Questo Submit Assignment for Grading

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