Constant Growth Valuation
Woidtke Manufacturing's stock currently sells for $30 a share. The stock just paid a dividend of $4.00 a share (i.e., D0 = $4.00), and the dividend is expected to grow forever at a constant rate of 10% 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.
%