Constant growth valuation-what stock price is expected 1


Constant growth valuation

Holtzman Clothiers' stock currently sells for $27 a share. It just paid a dividend of $1 a share (i.e., D0 = $1). The dividend is expected to grow at a constant rate of 3% 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. %

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Financial Management: Constant growth valuation-what stock price is expected 1
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