I'm not sure if I answered this problem correctly, could someone check it for me? Thanks

A firm pays a $4.90 dividend at the end of year one (D1), has a stock price of $70, and a constant growth rate (g) of 6 percent. Compute the required rate of return.

Po=D1/Ke-g 4.90/70 -.06 = 4.90/69.94 = 0.07006

After the 6% price increase, the stock was originally priced at $66 at beginning of year.
$70/1.06=about $66.

paid $66 and get $4.90, return is 7.4%.

Bin Restaurant Corp preferred stock has market price of $18. If it has a yearly dividend of $2.50, what is your expected rate of return if you purchase the stock at its market price?

I think the answer is 13.89%

The formula is "Price of the stock = Div/(rate-growth)
70 = 4.90/(r-0.06)
r-0.06 = 4.90/70
r-0.06 = 0.07
r = 0.07+0.06 = 0.13 = 13%

How do I compute the growth rate with the following information:

Common stock selling price $36.75, par value of $5
Recent dividend payment $1.32
EPS has increased from $1.49 to $3.06 in the past five years
Required rate of return 15%