Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Constant growth valuation
Harrison Clothiers' stock currently sells for $19 a share. It just paid a dividend of $3 a share (that is, D0 = 3). The dividend is expected to grow at a constant rate of 4% 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.
%
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