1. Holtzman Clothiers's stock currently sells for $23 a share. It just paid a dividend of $3.5 a share (i.e., D0 = $3.5). The dividend is expected to grow at a constant rate of 7% a year. What stock price is expected 1 year from now? Round your answer to two decimal places.
$
2. What is the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations.
%
3. Farley Inc. has perpetual preferred stock outstanding that sells for $36.00 a share and pays a dividend of $3.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places.
%