Dividend is expected to grow forever at constant rate

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Woidtke Manufacturing's stock currently sells for $28 a share. The stock just paid a dividend of $3.25 a share (i.e., D0 = $3.25), and the dividend is expected to grow forever at a constant rate of 8% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent.

$   ________

What is the estimated required rate of return on Woidtke's stock? Do not round intermediate calculations. Round the answer to three decimal places.

________ %

Reference no: EM131050349

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