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    Harrison Clothiers: Constant Growth Valuation, Expected Stock Price, and Required ROR

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    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?

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    https://brainmass.com/business/accounting/harrison-clothiers-constant-growth-valuation-expected-stock-price-and-required-ror-194193

    Solution Preview

    Using the constant growth formula
    Required return = D1/MP + g
    Total return = Dividend ...

    Solution Summary

    The solution explains the calculation of expected stock price and the rate of return.

    $2.19

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