- Holtzman Clothiers's stock currently sells for $39.00 a share. It just paid a dividend of $1.00 a share (i.e., D0 = $1.00). The dividend is expected to grow at a constant rate of 10% a year. What stock price is expected 1 year from now? What is the required rate of return?

- Carnes Cosmetics Co.'s stock price is $35, and it recently paid a $2.00 dividend. This dividend is expected to grow by 21% for the next 3 years, then grow forever at a constant rate, g; and r_s = 15%. At what constant rate is the stock expected to grow after Year 3?