2.

CONSTANT GROWTH VALUATION

Tresnan Brothers is expected to pay a $2.7 per share dividend at the end of the year (i.e., D1 = $2.7). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, rs, is 16%. What is the stock's current value per share? Round your answer to two decimal places

3. CONSTANT GROWTH VALUATION Holtzman Clothiers's stock currently sells for $25 a share. It just paid a dividend of $2 a share (i.e., D0 = $2). The dividend is expected to grow at a constant rate of 10% a year. What stock price is expected 1 year from now? Round your answer to two decimal places. $ 27.50

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

I keep getting 14.4% for this which isn't correct. Can anyone help?