Holtzman Clothiers's stock currently sells for $22.00 a share. It just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow at a constant rate of 10% a year. What stock price is expected 1 year from now? Round your answer to two decimal places.$  What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.  %

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 3P
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Holtzman Clothiers's stock currently sells for $22.00 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 10% 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? Do not round intermediate calculations. Round your answer to two decimal places.
  %

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