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10. Harrison Clothiers stock currently sells for $20.00 a share. It just paid a dividend of $1.00 a share (that is, Do = $1.
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Answer #1

Expected price=Current price*(1+Growth rate)

=20*1.06

=$21.2

Required return=(D1/Current price)+Growth rate

=[(1*1.06)/20]+0.06

=11.3%

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