Problem 7-09 Constant Growth Valuation

Crisp Cookware's common stock is expected to pay a dividend of $1.5 a share at the end of this year (D₁ = $1.50); its beta is 1.20. The risk-free rate is 5.9% and the market risk premium is 5%. The dividend is expected to grow at some constant rate g_L, and the stock currently sells for $28 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.