$10-3$ CONSTANT GROWTH VALUATION The required rate of return on Eastern Inc.$\text{'}$s stock is $12\%$ and it has just paid a dividend of $$1\mathrm{.}20$ a share. The stock currently sells for $$15\mathrm{.}60$ a share. Assuming that the dividend grows consistently at a fixed growth rate, what is the growth rate? What is the expected stock price one year from now?