problem: Harrison Clothiers' stock currently sells for 19.00 dollar per share. It just paid a dividend of $3.25 per share [D0 = 3.25]. The dividend is expected to grow at a constant rate of 10 percent a year.
[A] What stock price is expected 1 year from now? Give your answer to the nearest hundredth.
[B] Determine the required rate of return? Give your answer to the nearest hundredth.