Open spreadsheet Constant growth \begin{tabular}{|l|r|} \hline Expected year-end dividend (D1) & $1.75 \\ \hline Beta coefficient & 0.90 \\ \hline Risk-free rate (rRF) & 5.10% \\ \hline Market risk premium (RPM) & 4.00% \\ \hline Current stock price (P0) & $50.00 \\ \hline Market in equilibrium & Yes \\ \hline \end{tabular} Calculate required return: Required return on common stock Calculate constant growth rate, g : Total return on common stock Expected dividend yield Expected capital gains yield Calculate stock price in 3 years, P3 : Number of years from today 3 Calculate P3 using P0 Alternative calculation: Calculate P3 using dividends