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7.8 thumbs up if youre right Constant Dividend Growth Valuation Crisp Cookware's common stock is expected to pay a dividend of $2.75 a share at
7.8 thumbs up if youre right
Constant Dividend Growth Valuation Crisp Cookware's common stock is expected to pay a dividend of $2.75 a share at the end of this year (D1=$2.75); its beta is 0.7 . The risk-free rate is 3.7% and the market risk premium is 4%. The dividend is expected to grow at some constant rate, g, and the stock currently sells for $80 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 P3 )? Do not round intermediate calculations. Round your answer to the nearest centStep by Step Solution
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