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    Harrison: Stock valuation using constant dividend growth

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    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?

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    https://brainmass.com/business/dividend-yield/harrison-stock-valuation-using-constant-dividend-growth-193607

    Solution Preview

    Given:
    P0=$20
    D0=$1
    g=10%
    We need to calculate P1
    Since r=D1/P0+g Insert the values and calculate the value ...

    Solution Summary

    Explains with calculations how to calculate the value of a constant growth stock.

    $2.19

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