What is the estimated required rate of return on woidtkes


Constant Growth Valuation

Woidtke Manufacturing's stock currently sells for $39 a share. The stock just paid a dividend of $2.25 a share (i.e., D0 = $2.25), and the dividend is expected to grow forever at a constant rate of 3% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent.

$ _______

What is the estimated required rate of return on Woidtke's stock? Round the answer to three decimal places.

%______

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Financial Management: What is the estimated required rate of return on woidtkes
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