Question: u D E E T G H Yes Formulas #N/A A B 1 Constant growth 2 3 Expected year-end dividend (D) $2.75 4 Beta coefficient

u D E E "T G H Yes Formulas #N/A A B 1 Constant growth 2 3 Expected year-end dividend (D) $2.75 4 Beta coefficient 0.9 5 Risk-free rate (CRF) 5.20% 6 Market risk premium (RPM) 5.00% 7 Current stock price (P.) $45.00 8 Market in equilibrium 9 10 Calculate required return: 11 Required return on common stock 12 13 Calculate constant growth rate, g: 14 Total return on common stock 15 Expected dividend yield 16 Expected capital gains yield 17 18 Calculate stock price in 3 years, P,: 19 Number of years from today 20 Calculate P, using P. 21 22 Alternative calculation 23 Calculate P, using dividends 24 25 #N/A #N/A #N/A #N/A #N/A

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