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You are considering an investment in the common stock of Crisp's Cookware. The stock

Asked Mar 25, 2010, 05:37 PM — 1 Answer
You are considering an investment in the common stock of Crisp's Cookware. The stock is expected to pay a dividend of $2 a share at the end of the year D1=$2. The stock has a beta equal to.0.9. The risk free rate is 5.6%, and market risk premium is 6%. The stock's dividend is expected to grow at some constant rate g. The stock currently sells for $25 a share. Assuming the market is in equilibrium, what does the maret believe will be the stock price at the end of 3 years.

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morgaine300 Posts: 6,564, Reputation: 1474
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Mar 26, 2010, 05:42 PM
Please see the guidelines for posting homework problems:
http://www.askmehelpdesk.com/finance...-b-u-font.html
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