Constant growth valuation
Holtzman Clothiers' stock currently sells for $34 a share. It just paid a dividend of $3 a share (i.e., D0 = $3). The dividend is expected to grow at a constant rate of 5% 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.
%