Question: A B C D Constant growth $2.75 0.90 3.20% Expected year-end dividend (D) Beta coefficient Risk-free rate (TRF) Market risk premium (RPM) Current stock price

A B C D Constant growth $2.75 0.90 3.20% Expected year-end dividend (D) Beta coefficient Risk-free rate (TRF) Market risk premium (RPM) Current stock price (Po) Market in equilibrium 4.50% $47.00 Yes Formulas Calculate required return: Required return on common stock #N/A Calculate constant growth rate, g: Total return on common stock Expected dividend yield Expected capital gains yield #N/A #N/A #N/A Calculate stock price in 3 years, P3: Number of years from today Calculate P3 using Po 3 3 #N/A Alternative calculation: Calculate P, using dividends = Sheet1 + #N/A

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