Holtzman Clothierss stock orrently sels for 1700 share It h

Holtzman Clothiers\'s stock orrently sels for $17.00 . share. It hat pkda dv dend d $3.25·share ti. e.. D-tas). rhe didend s espected to gr-at . ernstwe tate of 7% a vest What stock price is e year from now? Round your answer to two decimal places what is the required rate of retum? o ot ound tmediate calclationsund your answer to wn deomal pso

Solution

a. expected price in one year = 17 * 1.07 = 18.19

b. required rate of return = 3.25*1.07/17 + 7% = 27.46%