Holtarnan Clothien's stock currently sells for $37 per share and pays a $1.75 dividend. The dividend is expected to grow 10% annually. To find the expected stock price in a year, calculate the new dividend amount at 10% growth and divide by the required rate of return.

1. Holtarnan Clothien's steck currently selis for $37.00 a share. It just paid a dividend of $1.75 a
share (0.e,,D5=$1.75). 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. 5 What is the
required rate of return? Do not round intermediate calculstions. Round your snswer to two decimal
places.