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You are considering an investment in the common stock of Cowher Corp. The stock is expected to pay a dividend of $2 per share at

You are considering an investment in the common stock of Cowher Corp. The stock is expected to pay a dividend of $2 per share at the end of the year (i.e., D1 = $2.0). The stock has a beta equal to 1.2. The risk free rate is 6 percent. The market risk premium is 5 percent. The stock's dividend is expected to grow at some constant rate, g. The stock currently sells for $40 a share. Assuming the market is in equilibrium, what does the market believe the stock price will be at the end of three years? What is p3

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