Constant Growth Valuation
Crisp Cookware's common stock is expected to pay a dividend of $2 a share at the end of this year (D1 = $2.00); its beta is 1.00; the risk-free rate is 4.5%; and the market risk premium is 5%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $46 a share. Assuming the market is in equilibrium, what does the market believe will be the stock's price at the end of 3 years (i.e., what is )? Do not round intermediate steps. Round your answer to the nearest cent.