Question: Constant growth Expected year-end dividend (D1) $1.75 Beta coefficient 0.90 Risk-free rate (rRF) 4.10% Market risk premium (RPM) 5.50% Current stock price (P0) $47.00 Market

Constant growth Expected year-end dividend (D1) $1.75 Beta coefficient 0.90 Risk-free rate (rRF) 4.10% Market risk premium (RPM) 5.50% Current stock price (P0) $47.00 Market in equilibrium Yes Calculate required return: Required return on common stock Calculate constant growth rate, g: Total return on common stock Expected dividend yield Expected capital gains yield Calculate stock price in 3 years, P3: Number of years from today 3 Calculate P3 using P0 Alternative calculation: Calcula

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