What is the required rate of return

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Harrison Clothiers' stock currently sells for $25.00 a share. It just paid a dividend of $3.00 a share (i.e., D0 = 3.00). The dividend is expected to grow at a constant rate of 3% a year.

a. What stock price is expected 1 year from now? Round your answer to two decimal places.

b. What is the required rate of return? Round your answers to two decimal places.

 

Reference no: EM13287785

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