What is estimated required rate of return on woidtke stock

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Reference no: EM131130551

Please work problem in excel and show formula

Woidtke Manufacturing’s stock currently sells for $22 a share. The stock just paid a dividend of $1.20 a share (i.e., D0 = $1.20), and the dividend is expected to grow forever at a constant rate of 10% a year. What stock price is expected 1 year from now? What is the estimated required rate of return on Woidtke stock (assume the market is in equilibrium with the required return equal to the expected return)?

Reference no: EM131130551

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