Question
Harrison Clothiers stock currently sells for $20 a share. The stock just paid a dividend of $1.00 a share (i.e., D0=$1.00). The divided is expected
Harrison Clothiers stock currently sells for $20 a share. The stock just paid a dividend of $1.00 a share (i.e., D0=$1.00). The divided is expected to grow at a constant rate of 10 percent a year.
a. What is the required rate of return on the companys stock?
b. What stock price is expected 1 year from now?
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Entrepreneurial Finance Finance For Small Business
Authors: Philip J. Adelman
1st Edition
0138129835, 9780138129835
