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Question: Constant growth valuation

Holtzman Clothiers' stock currently sells for $26 a share. It just paid a dividend of $4 a share (i.e., D0 = $4). 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.

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Category:- Basic Finance
Reference No.:- M92798774

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