Business
Business, 09.10.2019 21:30, ashl3yisbored

Crisp cookware’s common stock is expected to pay a dividend of $3 a share at the end of this year (d1 = $3.00); its beta is 0.8; the risk free rate is 5.2%; and the market risk premium is 6%. the dividend is expected to grow at some common rate g, and the stock currently sells for $40 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 pˆ 3)?

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Crisp cookware’s common stock is expected to pay a dividend of $3 a share at the end of this year (d...

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