Investors Require an After-Tax Rate of Return of 9% on Their

Investors require an after-tax rate of return of 9% on their stock investments.The tax rate on dividends is 26%, while capital gains escape taxation.A firm will pay $2.50 per share in dividends one year from now, after which the stock is expected to be at a price of $30.Determine the current stock price and the expected before tax rate of return for a one-year holding period.
$$\begin{array}{l}\begin{array} { | l | r | } \hline\text { DATA }\\\hline \text { Investor return } & 9 \% \\\hline \text { Dividend amount } & \$ 2.50 \\\hline \text { Tax rate } & 20 \% \\\hline \text { Future price prediction } & \$ 30.00 \\\hline\end{array}\end{array}$$