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9. Harrison Clothiers' stock currently sells for $20 ashare. It just paid a dividend of $1.00...

9.

Harrison Clothiers' stock currently sells for $20 ashare. It just paid a dividend of $1.00 a share (that isD0 = $1.00). The dividend is expected to grow at aconstant rate of 6 percent a year. What stock price isexpected 1 year from now? What is the required rate ofreturn?

10.

A stock is expected to pay a dividend of $0.50 at the end of theyear (that is, D1 = 0.50), and it should continue togrow at a constant rate of 7 percent a year. If its requiredreturn is 12 percent, what is the stock's expected price 4 yearsfrom today?

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