Constant growth valuation
Holtzman Clothiers' stock currently sells for $35 a share. It just paid a dividend of $2.5 a share. The dividend is expected to grow at a constant rate 4% a year.
a. What stock price is expected 1 year from now? Round your answer to two decimal places. $______________
b. What is the required rate of return? Round your answer to two decimal places. Do not round intermediate calculations. ___________%