$09-$ End$-$of$-$Chapter Problems $-$ Stocks and Their Valuation

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Attempts

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Keep the Highest $\frac{0}{2}$

Problem $9\mathrm{.}03($Constant Growth Valuation$)$

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Holtzman Clothiers's stock currently sells for $$35\mathrm{.}00$ a share. It just paid a dividend of $$3\mathrm{.}00$ a share $($i$.$e$.,D_0=$$$3\mathrm{.}00).$ The dividend is expected to grow at a constant rate of $5\%$ a year

What stock price is expected $1$ year from now? Round your answer to the nearest cent.

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What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. $\%$