$9-3$ CONSTANT GROWTH VALUATION Holtzman Clothiers$$s stock

currently sells for $$38\mathrm{.}00$ a share. It just paid a dividend of

$$2\mathrm{.}00$ a share $($i$.$e$.,$ D$0$ $$200).$ The dividend is expected to grow at

a constant rate of $5\%$ a year. What stock price is expected $1$ year

from now? What is the required rate of return?