Constant growth valuation-stock price is expected

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Reference no: EM13806753

Constant growth valuation

Harrison Clothiers' stock currently sells for $20 a share. It just paid a dividend of $2 a share (that is, D0 = 2). The dividend is expected to grow at a constant rate of 6% a year.

What stock price is expected 1 year from now? Round your answer to two decimal places.

What is the required rate of return? Round your answers to two decimal places.

Reference no: EM13806753

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