9. A. Holtzman Clothiers's stock currently sells for $37.00 a share.It just paid a dividend of $1.25 a share (i.e.,D0 = $1.25). The dividend is expected to grow at aconstant rate of 10%
year.
What stock price is expected 1 year from now? Round your answerto the nearest cent.$
B. Avondale Aeronautics has perpetual preferred stockoutstanding with a par value of $100. The stock pays a quarterlydividend of $2.00 and its current price is $110.
What is its nominal annual rate of return? Do not roundintermediate calculations. Round your answer to two decimalplaces. %
What is its effective annual rate of return? Do not roundintermediate calculations. Round your answer to two decimalplaces. %
What is the required rate of return? Do not round intermediatecalculations. Round your answer to two decimal places. %
9. A. Holtzman Clothiers's stock currently sells for $37.00 a share. It just paid a dividend of $1.25 a share (i.e., D0
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