1)Woidtke Manufacturing's stock currently sells for $40 a share. The stock just paid a dividend of $1.80 a share (i.e., D₀ = $1.80), and the dividend is expected to grow forever at a constant rate of 9% a year. What stock price is expected 1 year from now?

2)What is the estimated required rate of return on Woidtke's stock (assume the market is in equilibrium with the required return equal to the expected return)?