Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Holtzman Clothiers's stock currently sells for $24.00 a share. It just paid a dividend of $3.50 a share (i.e., Do = $3.50). The dividend is expected to grow at a
constant rate of 8% 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.
25.92
%
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Transcribed Image Text:Holtzman Clothiers's stock currently sells for $24.00 a share. It just paid a dividend of $3.50 a share (i.e., Do = $3.50). The dividend is expected to grow at a constant rate of 8% 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. 25.92 %
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