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You are considering an investment in Crisp's Cookware's common stock. The stock is expected to pay a dividend of $2 a share at the end
You are considering an investment in Crisp's Cookware's common stock. The stock is expected to pay a dividend of $2 a share at the end of the year (D1 = $2.00); its beta is 1.10; 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, the stock currently sells for $29 a share. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years (i.e., what is P(P has ^ above)3 )?
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