Woidtke Manufacturing's stock currently sells for $26 a share.The stock just paid a dividend of $2.75 a share (i.e., D0 = $2.75),and the dividend is expected to grow forever at a constant rate of9% a year. What stock price is expected 1 year from now? Round youranswer to the nearest cent. What is the estimated required rate ofreturn on Woidtke's stock? Do not round intermediate calculations.Round the answer to three decimal places. (Assume the market is inequilibrium with the required return equal to the expectedreturn.)
