3. Problem 9.03 (constant growth valuation)

Holtzman Clothier's stock currently sells for $29 a share. It just paid a dividend of $3.25 a share (i.e., Do = $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 points.

? %