Constant Growth Valuation
Woidtke Manufacturing's stock currently sells for $28 a share. The stock just paid a dividend of $3.75 a share (i.e., D0 = $3.75), and the dividend is expected to grow forever at a constant rate of 10% 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? Do not round intermediate calculations. Round the answer to three decimal places.
%.