Company x's stock currently sells for $20.00 a share. It just paid a dividend of $1.00 a share. 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, 11:19 pm ad1c9bdddf
Given, P0 = $20
D0 = $1
D1 = D0 (1 + g)
= 1 (1 + 0.06)
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