Woidtke Manufacturing's stock currently sells for $18 a share. The stock just paid a dividend of $1.80 a share (i.e., D0= $1.80), and the dividend is expected to grow forever at a constant rate of 6% a year. What stock price is expected 1 year from now?

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What is the estimated required rate of return on Woidtke's stock (assume the market is in equilibrium with the required return equal to the expected return)?

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