(73) Constant Growth Valuation Woidtke Manufacturings stock currently sells for $20 a share. The stock just paid...
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(7–3)
Constant Growth Valuation Woidtke Manufacturing’s stock currently sells for $20 a share. The stock just paid a dividend of $1.00 a share (i.e., D0 = $1.00), and the dividend is expected to grow forever at a constant rate of 10% a year. What stock price is expected 1 year from now?
What is the required rate of return on Woidtke’s stock?
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Related Book For 
Financial Management Theory And Practice
ISBN: 9781439078105
13th Edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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