Okay, here are the steps to solve this problem:
1) Crane Corp paid a dividend of $2.60 yesterday.
2) The dividend is expected to grow at a steady rate of 5% per year.
3) So the dividend next year will be $2.60 * 1.05 = $2.73
4) The year after that, the dividend will be $2.73 * 1.05 = $2.87
5) Investors require a 20% rate of return.
6) So the dividend amount needs to generate a 20% return.
7) Let's assume the market price of the stock is P.
8) Then the dividend yield is (dividend amount) / (market price)
9) To get a 20% return, the yield needs to be 0.20
10) So for a dividend of $2.73 (from step 3), the yield is ($2.73) / P = 0.20
11) Solving for P gives: P = $2.73 / 0.20 = $13.65
So the market price of Crane stock should be $13.65 (rounded to 2 decimals)
Let me know if you have any questions or need more details!