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Crisp Cookwares common stock is expected to pay a dividend of $3 a share at the end of this year D1 $3 00 ; its
Crisp Cookwares common stock is expected to pay a dividend of $3 a share at the end of this year D1 $3 00 ; its beta is 0.8. The risk-free rate is 5.2% and the market risk premium is 6%. The dividend is expected to grow at some constant rate gL, and the stock currently sells for $40 a share. Assuming the market is in equilibrium, what does the market believe will be the stocks price at the end of 3 years (i.e., what i s P^ 3 ) ?
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