What is the required rate of return


Problem

Holtzman Clothiers's stock currently sells for $27.00 a share. It just paid a dividend of $1.50 a share (i.e., Do = $1.50). The dividend is expected to grow at a constant rate of 8% a year.

• What stock price is expected 1 year from now?
• What is the required rate of return? Do not round intermediate calculations.

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Financial Accounting: What is the required rate of return
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