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Assuming the market is in equilibrium what does the market

Tollhouse cookies common stock is expected to pay a dividend of $4 at share at the end of this year; its beta is 1.4. The risk-free rate is 5.0% and the market risk premium is 5%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $40 per share. Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years?

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Finance Basics: Assuming the market is in equilibrium what does the market

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