What is required rate of return

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Reference no: EM131992812

oltzman Clothiers's stock currently sells for $20 a share. It just paid a dividend of $3 a share (i.e., D0 = $3). The dividend is expected to grow at a constant rate of 7% 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 your intermediate calculations.

Reference no: EM131992812

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