Woidtke manufacturings stock currently sells for 32 a share


Constant Growth Valuation

Woidtke Manufacturing's stock currently sells for $32 a share. The stock just paid a dividend of $2.25 a share (i.e., D0 = $2.25), and the dividend is expected to grow forever at a constant rate of 4% 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.

%

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Woidtke manufacturings stock currently sells for 32 a share
Reference No:- TGS01183347

Expected delivery within 24 Hours