Part A)

A stock is expected to pay a dividend of $0.75 at the end of the year (i.e., D₁ = $0.75), and it should continue to grow at a constant rate of 3% a year. If its required return is 15%, what is the stock's expected price 3 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

$

Part B)

Holtzman Clothiers's stock currently sells for $27.00 a share. It just paid a dividend of $3.50 a share (i.e., D₀ = $3.50). 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. %