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Constant Growth Valuation Woidtke Manufacturing's stock currently sells for $17 a share. The stock just paid a dividend of $2.25 a share (i.e., D0 =
Constant Growth Valuation
Woidtke Manufacturing's stock currently sells for $17 a share. The stock just paid a dividend of $2.25 a share (i.e., D0 = $2.25), and the dividend is expected to grow forever at a constant rate of 10% a year.
What stock price is expected 1 year from now? $___
What is the estimated required rate of return on Woidtke's stock? (Do not round intermediate calculations.) __%
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