Holtzman Clothiers's stock currently sells for $39.00 a share. It just paid a dividend of $1.25 a share (i.e., Do = $1.25). The dividend is expected to grow at a

constant rate of 4% a year.

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

$

40.56 0

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

Answer rating: 100% (QA)

1 To find the expected stock price one year from now we can use the Gordon Growth Model also known a... View the full answer