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Ch 07: End-of-Chapter Problems Corporate Valuation and Stock Valuation k Back to Assignment Keep the...

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Ch 07: End-of-Chapter Problems Corporate Valuation and Stock Valuation k Back to Assignment Keep the Highest: 1 Attempts: 3. Problem 7-16 (Constant Dividend Growth Valuation) Problem Walk-Through eBook Constant Dividend Growth Valuation Crisp Cookware's common stock is expected to pay a dividend of $2 a share at the end of this year (D1 $2.00); its beta is 0.8. The risk-free rate is 5.3% and the market risk premium is 6%. The dividend is expected to grow at some constant rate, gL, and the stock currently sells for $50 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 3)? Do not round intermediate calculations. Round your answer to the nearest cent (i.e., what is X

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