Harrison Clothiers stock currently sells for $20.00 a share. It just paid a dividend of $1.00 a share (that is, D =$1.00. The dividend is expected to grow at a constant rate of 6 percent 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, 10:50 pm ad1c9bdddf
The solution analyzes constant growth valuations for Harrison Clothiers stock. The stock price expected 1 year from now is determined as well as the required rate of return.