Constant Growth Valuation
Woidtke Manufacturing's stock currently sells for $15 a share. The stock just paid a dividend of $1.75 a share (i.e., D0 = $1.75), and the dividend is expected to grow forever at a constant rate of 7% 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? Round the answer to three decimal places. %