Explain the risk free rate

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Reference no: EM13107499

You are seeing an investment in Archer Corp's stock, which is predictable to pay a dividend of $2,00 a share at the end of the year (D1=$2.00) as well as has a beta of .The risk free rate is 5.6% as well as the market risk premium is 6%. The stock currently sells for $25.00 per share as well as its dividends is expected to grow at some constant rate, g. assuming the market is in equilibrium what does the market consider will be the stock price at the end of 3 years?

Reference no: EM13107499

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