Problemharrison clothiers stock currently sells for 23 a, Ask an Expert

Accounting

Problem:

Harrison Clothiers' stock currently sells for $23 a share. It just paid a dividend of $4 a share (that is, D0 = 4). The dividend is expected to grow at a constant rate of 7% a year.

Required:

Question 1: What stock price is expected 1 year from now?

Question 2: What is the required rate of return?

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170013

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