Constant Growth Valuation

Woidtke Manufacturing's stock currently sells for $21 a share. The stock just paid a dividend of $3.25 a share (i.e., D₀ = $3.25), and the dividend is expected to grow forever at a constant rate of 4% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent.

8-11: Valuing Common Stocks with the Dividend Growth Model Problem 8-3 Constant Growth Valuation Woidtke Manufacturing's stock currently sells for $21 a share. The stock just paid a dividend of $3.25 a share (i.e., Do = $3.25), and the dividend is expected to grow forever at a constant rate of 4% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. What is the estimated required rate of return on Woidtke's stock? Round the answer to three decimal places