Harrison Clothiers' stock currently sells for $20 a share. It just paid a dividend of $1 a share (D= 1.00) The dividend is expected to grow at a constant rate of 6% a year. What stock price is expected 1 year from now? What is the required rate of return?© BrainMass Inc. brainmass.com June 3, 2020, 9:40 pm ad1c9bdddf
Using the constant growth formula
Required return = D1/MP + g
Total return = Dividend ...
The solution explains the calculation of expected stock price and the rate of return.