Holtzman Clothiers's stock currently sells for $28.00 a share. It just paid a dividend of $4.00 a share (i.e., D₀ = $4.00). The dividend is expected to grow at a constant rate of 7% a year.

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

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