Question
Holtzman Clothiers's stock currently sells for $38.00 a share. It just paid a dividend of $4.00 a share (i.e., D 0 = $4.00). The dividend
Holtzman Clothiers's stock currently sells for $38.00 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 9% a year.
What stock price is expected 1 year from now? Round your answer to the nearest cent. $
What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
