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Woidtke Manufacturing's stock currently sells for $23 a share. The stock just paid a dividend of $3.00 a share (i.e., D0 = $3.00), and the
Woidtke Manufacturing's stock currently sells for $23 a share. The stock just paid a dividend of $3.00 a share (i.e., D0 = $3.00), and the dividend is expected to grow forever at a constant rate of 4% 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.) %
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