What is required rate of return-constant growth valuation

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Constant growth valuation Harrison Clothiers' stock currently sells for $31 a share. It just paid a dividend of $2.5 a share (that is, D0 = 2.5). The dividend is expected to grow at a constant rate of 5% a year.

What stock price is expected 1 year from now? Round your answer to two decimal places. $ 32.55

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

Reference no: EM131060628

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