What is required rate of return-constant growth valuation

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Constant growth valuation

Holtzman Clothiers' stock currently sells for $23 a share. It just paid a dividend of $1.25 a share (i.e., D0 = $1.25). The dividend is expected to grow at a constant rate of 9% 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.

%

Constant growth valuation

Tresnan Brothers is expected to pay a $1.5 per share dividend at the end of the year (i.e., D1 = $1.5). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, rs, is 13%. What is the stock's current value per share? Round your answer to two decimal places.

$

Reference no: EM131619085

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