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You are considering an investment in the common stock of Crisp's Cookware. The stock is expected to pay a dividend of $1.70 a share at
You are considering an investment in the common stock of Crisp's Cookware. The stock is expected to pay a dividend of $1.70 a share at the end of the year (D1=1.70). The stock has a beta of 0.9. The risk-free rate is 4.5%, and the marketexpected returnis 8.5%. The stock's dividend is expected to grow at some constant rate g. The sock currently sells for $23 a share. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years?
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