Dividend is expected to grow forever at constant rate

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Woidtke Manufacturing's stock currently sells for $22 a share. The stock just paid a dividend of $3.50 a share (i.e., D0 = $3.50), and the dividend is expected to grow forever at a constant rate of 6% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. What is the estimated required rate of return on Woidtke's stock? Round the answer to three decimal places.

Reference no: EM131308846

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