Calculate expected stock price and required rate of return


Question: Regular growth valuation Harrison Clothiers' stock currently sells for dollar 20 a share. It just paid a dividend of $1.00 a share [that is, Do=$1.00]. The dividend is expected to rise at a constant rate of 6% a year. Calculate stock price is expected 1 year from now? Calculate the required rate of return?

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Finance Basics: Calculate expected stock price and required rate of return
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