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| Teaching Since: | May 2017 |
| Last Sign in: | 284 Weeks Ago |
| Questions Answered: | 27237 |
| Tutorials Posted: | 27372 |
MCS,MBA(IT), Pursuing PHD
Devry University
Sep-2004 - Aug-2010
Assistant Financial Analyst
NatSteel Holdings Pte Ltd
Aug-2007 - Jul-2017
Constant Growth Valuation
Crisp Cookware's common stock is expected to pay a dividend of $2 a share at the end of this year (D1 = $2.00); its beta is 1.00; the risk-free rate is 4.5%; and the market risk premium is 5%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $46 a share. Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years (i.e., what is )? Do not round intermediate steps. Round your answer to the nearest cent.
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