Woidtke Manufacturing's stock currently sells for $22 a share. The stock just paid a dividend of $1.20 a share (i.e. Do=$1.20) and the dividend is expected to grow forever at a constant rate of 10% a year. What stock price is expected 1 year from now? 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)? Please see my solution that was deemed incorrect below and help me understand my error. I need an explanation and correction so I do not make the same mistakes on the test. Po=$22 Do=$1.20 Constant Rate = 10% One year from now: P1=Po*(1+gL) = $22*(1+0.10) = $24.20 stock price in one year from now rs= Do*(1+gL)/Po + gL = $1.20*(+0.10)/$22 + 0.10 = 16% Estimated required rate of return Please explain error and show correct way.