CONSTANT GROWTH VALUATION (2 PARTS)
Holtzman Clothiers's stock currently sells for $26 a share. It just paid a dividend of $4 a share (i.e., D0 = $4). The dividend is expected to grow at a constant rate of 3% a year.
What stock price is expected 1 year from now? Round your answer to two decimal places.
answer: $ _________
What is the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations.
answer: % _________