Calculation of stock price and required rate of return

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Reference no: EM1314331

Constant growth valuation:

1. Harrison Clothiers' stock currently sells for $19.00 a share. It just paid a dividend of $3.25 a share (i.e., D0 = 3.25). The dividend is expected to grow at a constant rate of 10% a year.

a. What stock price is expected 1 year from now? Round the answer to the nearest hundredth.

b. What is the required rate of return? Round the answers to the nearest hundredth. _____%

Reference no: EM1314331

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