Ok, I'll take a stab at this one. If the investors are expecting an 11% ROR annually and if the stock were to appreciate linearly (unlikely) at 7% a year then the difference would have to made up of the dividend. Thus 11%-7%=$2 assuming (and you know what that means) that the recent dividend is paid our annually. So, $2=4% of the stock price and the stock price is $2x100%/4%=$2x25=$50. Of course after today the stock has fallen almost in half or has become totally worthless, one or the other....