1. A stock is expected to pay a dividend of $2.50 at the end of the year (i.e., D1= $2.50), and it should continue to grow at a constant rate of 9% a year. If its required return is 13%, what is the stock's expected price 1 year from today? Do not round intermediate calculations. Round your answer to the nearest cent.
2. Holtzman Clothiers's stock currently sells for $27.00 a share. It just paid a dividend of $1.75 a share (i.e., D0= $1.75). The dividend is expected to grow at a constant rate of 10% a year.

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

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