Question: Constant growth Expected year-end dividend (D1) $1.50 Beta coefficient 0.90 Risk-free rate (rRF) 3.30% Market risk premium (RPM) 5.50% Current stock price (P0) $37.00 Market

Constant growth Expected year-end dividend (D1) $1.50 Beta coefficient 0.90 Risk-free rate (rRF) 3.30% Market risk premium (RPM) 5.50% Current stock price (P0) $37.00 Market in equilibrium Yes Formulas Calculate required return: Required return on common stock #N/A Calculate constant growth rate, g: Total return on common stock #N/A Expected dividend yield #N/A Expected capital gains yield #N/A Calculate stock price in 3 years, P3: Number of years from today 3 Calculate P3 using P0 #N/A Alternative calculation: Calculate P3 using dividends

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