Problem 9-3 Constant growth valuation

Harrison Clothiers' stock currently sells for $39 a share. It just paid a dividend of $1.75 a share (that is, D₀ = 1.75). The dividend is expected to grow at a constant rate of 8% a year.

1. What stock price is expected 1 year from now? Round your answer to two decimal places. $
2. What is the required rate of return? Round your answers to two decimal places. %