PDA

View Full Version : Constant growth valuation


cynzast
Jan 29, 2010, 02:57 PM
Harrison clothier’s stock currently sells for $20 a share. It just paid a dividend of $1.00 (that is Do = $1.00) The divident is expected to grow at a constant rate of 6 percent a year. What stock price is expected 1 year from now. What is the required rate of return?

morgaine300
Jan 29, 2010, 11:57 PM
Please see the guidelines for posting homework:
https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html