Holtzman Clothiers's stock currently sells for $16.00 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 5% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent

Holtzman Clothiers's stock currently sells for $16.00 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 5% a year. What stock price is expected 1 year from now? Round your answer to the nearest cent

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 3P

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Question

Holtzman Clothiers's stock currently sells for $16.00 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 5% a year.

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

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