Problemwoidtke manufacturings stock currently sells for 36, Ask an Expert

Finance

Problem:

Woidtke Manufacturing's stock currently sells for $36 a share. The stock just paid a dividend of $3.75 a share (i.e., D0 = $3.75), and the dividend is expected to grow forever at a constant rate of 3% a year.

Answer the following question:

Question 1: What stock price is expected 1 year from now?

Question 2: What is the estimated required rate of return on Woidtke's stock?

Please provide all calculation.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146176

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