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Constant growth valuation

Holtzman Clothiers' stock currently sells for $19 a share. It just paid a dividend of $3.5 a share (i.e., D0 = $3.5). The dividend is expected to grow at a constant rate of 9% a year.

A. What stock price is expected 1 year from now? Round your answer to two decimal places.

$_______

B. What is the required rate of return? Round your answers to two decimal places. Do not round your intermediate calculations.

______%

Financial Management, Finance

  • Category:- Financial Management
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