Constant growth valuation

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Constant growth valuation

Holtzman Clothiers' stock currently sells for $35 a share. It just paid a dividend of $2.5 a share. The dividend is expected to grow at a constant rate 4% a year.

a. What stock price is expected 1 year from now?  Round your answer to two decimal places.  $______________

b. What is the required rate of return? Round your answer to two decimal places. Do not round intermediate calculations. ___________%

Reference no: EM131099175

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