1.

Holtzman Clothiers's stock currently sells for $25.00 a share. It just paid a dividend of $3.25 a share (i.e., D0 = $3.25). The dividend is expected to grow at a constant rate of 6% a year.

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

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

2.

Scampini Technologies is expected to generate $200 million in free cash flow next year, and FCF is expected to grow at a constant rate of 7% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 15%. If Scampini has 55 million shares of stock outstanding, what is the stock's value per share? Do not round intermediate calculations. Round your answer to the nearest cent.

Each share of common stock is worth $ , according to the corporate valuation model.