Harrison Clothiers stock currently sells for $20 a share. The stock just paid a dividend of $1.00 a share. The dividend is expected to grow at a constant rate of 10% a year. What stock prices is expected 1 year from now? What is the value per share of the company's stock?© BrainMass Inc. brainmass.com October 1, 2020, 9:46 pm ad1c9bdddf
We need to calculate P1
Since r=D1/P0+g Insert the values and calculate the value ...
Explains with calculations how to calculate the value of a constant growth stock.