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George has one share of stock and one bond. The total value of the two...

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Finance

George has one share of stock and one bond. The total value of the two securities is $1,369.40. The bond has a YTM of 12.73 percent, a coupon rate of 8.66 percent, and a face value of $1,000.00; pays semi-annual coupons with the next one expected in 6 months, and matures in 3 years. The stock pays annual dividends that are expected to grow by 4.85 percent per year forever. The next dividend is expected to be $12.01 and paid in one year. What is the expected return for the stock?

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