Constant growth valuation
Holtzman Clothiers' stock currently sells for $19 a share. It just paid a dividend of $2.25 a share (i.e., D0 = $2.25). The dividend is expected to grow at a constant rate of 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 answers to two decimal places. Do not round your intermediate calculations. ___________%