Constant growth valuation
Holtzman Clothiers' stock currently sells for $16 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 7% 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. %