Woidtke manufacturings stock currently sells for 20 a share


Question: Woidtke Manufacturing's stock currently sells for $20 a share. The stock just paid adividend of $1.00 a share (i.e., D0 = $1.00), and the dividend is expected to grow foreverat a constant rate of 10% a year. What stock price is expected 1 year from now? What is the required rate of return on Woidtke's stock?

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Mathematics: Woidtke manufacturings stock currently sells for 20 a share
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