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Click here to read the eBook: Constant Growth Stocks CONSTANT GROWTH VALUATION Holtzman Clothiers's stock currently sells for $28 a share. It just paid a

image text in transcribed Click here to read the eBook: Constant Growth Stocks CONSTANT GROWTH VALUATION Holtzman Clothiers's stock currently sells for $28 a share. It just paid a dividend of $1.5 a share (i.e., D0=$1.5 ). The dividend is expected to grow at a constant rate of 4% a year. a. What stock price is expected 1 year from now? Round your answer to two decimal places. $ b. What is the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations. %

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