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Georgia [21]
3 years ago
7

Crisp Cookware's common stock is expected to pay a dividend of $3 per share at the end of this year; its beta is 0.9; the risk-f

ree rate is 5.2%; and the market risk permium is 6%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $40 per share. What does the market believe will be the stock's price three years from now?
Business
1 answer:
slavikrds [6]3 years ago
7 0

Answer:

The answer is $41.21

Explanation:

Required Rate of Return = Risk Free Rate + Beta*(Market Risk Premium)= 5.2% + 0.9 * 6% = 10.6%

Cost of Equity = D1/Current Stock Price + Growth Rate

10.6% = $3/$40 +g

g = 3.1%

Stock Price After 3 Years = Current Stock Price*Growth Rate= $40 * (1.031)= $41.21

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Sam, a third-grader, really likes to look for interesting bugs with other people during recess. Each of Sam's friends offers to
andre [41]

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3 years ago
Which position describes karl marx’s view of religion and society?
PtichkaEL [24]
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on november 1, 2021, aviation training corp. borrows $60,000 cash from community savings and loan. aviation training signs a thr
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An income statement for Tommy's Bookstore for the first quarter of the year is presented below: Tommy's Bookstore Income Stateme
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Answer:

Contribution margin = $200,000

Explanation:

As per the data given in the question,

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7 0
3 years ago
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