Constant growth valuation-required rate of return

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Constant growth valuation

Holtzman Clothiers' stock currently sells for $16 a share. It just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow at a constant rate of 7% a year.

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

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

Reference no: EM131898765

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