ZuoTi.Pro
Question

Holtzman Clothiers's stock currently sells for $33.00 a share. It just paid a dividend of $3.00 a share (i.e., D0 = $3.0...

Holtzman Clothiers's stock currently sells for $33.00 a share. It just paid a dividend of $3.00 a share (i.e., D0 = $3.00). The dividend is expected to grow at a constant rate of 9% a year.

What stock price is expected 1 year from now? Round your answer to the nearest cent.
$  

What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.
  %

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Expected price=Current price*(1+Growth Rate)

=$33*1.09

=$35.97

Required return=(D1/Current price)+Growth rate

=[(3*1.09)/33]+0.09

=18.91%(approx).

1 0
Add a comment
Know the answer?
Add Answer to:
Holtzman Clothiers's stock currently sells for $33.00 a share. It just paid a dividend of $3.00 a share (i.e., D0 = $3.0...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Holtzman Clothiers's stock currently sells for $15.00 a share. It just paid a dividend of $3.00...

    Holtzman Clothiers's stock currently sells for $15.00 a share. It just paid a dividend of $3.00 a share (i.e., D0 = $3.00). The dividend is expected to grow 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 required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. ?

  • Holtzman Clothiers's stock currently sells for $31.00 a share. It just paid a dividend of $2.25...

    Holtzman Clothiers's stock currently sells for $31.00 a share. It just paid a dividend of $2.25 a share (i.e., D0 = $2.25). The dividend is expected to grow at a constant rate of 10% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

  • Holtzman Clothiers's stock currently sells for $29.00 a share. It just paid a dividend of $3.25...

    Holtzman Clothiers's stock currently sells for $29.00 a share. It just paid a dividend of $3.25 a share (i.e., D0 = $3.25). The dividend is expected to grow at a constant rate of 7% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. $ What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

  • Holtzman Clothiers's stock currently sells for $27.00 a share. It just paid a dividend of $2.00...

    Holtzman Clothiers's stock currently sells for $27.00 a share. It just paid a dividend of $2.00 a share (i.e., D0 = $2.00). The dividend is expected to grow at a constant rate of 7% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. $ What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

  • Holtzman Clothiers's stock currently sells for $24.00 a share. It just paid a dividend of $1.50...

    Holtzman Clothiers's stock currently sells for $24.00 a share. It just paid a dividend of $1.50 a share (i.e., D0 = $1.50). The dividend is expected to grow at a constant rate of 4% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. $   What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.   %

  • Holtzman Clothiers's stock currently sells for $34.00 a share. It just paid a dividend of $1.50...

    Holtzman Clothiers's stock currently sells for $34.00 a share. It just paid a dividend of $1.50 a share (i.e., D0 = $1.50). The dividend is expected to grow at a constant rate of 3% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. $   What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.   %

  • Holtzman Clothiers's stock currently sells for $34.00 a share. It just paid a dividend of $3.75...

    Holtzman Clothiers's stock currently sells for $34.00 a share. It just paid a dividend of $3.75 a share (i.e., D0 = $3.75). The dividend is expected to grow at a constant rate of 5% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. _____$ What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. _________ % PLEASE SHOW WORK PLEASE. SHOW HOW...

  • Holtzman Clothiers's stock currently sells for $40.00 a share. It just paid a dividend of $2.00...

    Holtzman Clothiers's stock currently sells for $40.00 a share. It just paid a dividend of $2.00 a share (i.e., Do = $2.00). The dividend is expected to grow at a constant rate of 9% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

  • Holtzman Clothiers's stock currently sells for $35.00 a share. It just paid a dividend of $2.50 a share (i.e., Do = $2....

    Holtzman Clothiers's stock currently sells for $35.00 a share. It just paid a dividend of $2.50 a share (i.e., Do = $2.50). The dividend is expected to grow at a constant rate of 6% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent. What is the required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. 0/0

  • Holtzman Clothiers's stock currently sells for $40 a share. It just paid a dividend of $1...

    Holtzman Clothiers's stock currently sells for $40 a share. It just paid a dividend of $1 a share (i.e., D0 = $1). The dividend is expected to grow at a constant rate of 6% a year. What stock price is expected 1 year from now? Round your answer to two decimal places. $ What is the required rate of return? Round your answer to two decimal places. Do not round your intermediate calculations. %

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT