Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve correctly !! will rate You are considering an investment in Justus Corporation's stock, which is expected to pry a dividend of $2,75 a

please solve correctly !! will rate
image text in transcribed
You are considering an investment in Justus Corporation's stock, which is expected to pry a dividend of $2,75 a share at the end of the yesr (D2=32.75) and has a beta of 0,9.7. The risk-free rate is 3.3%, and the market risk premlum is 4%. Justus currently selis for $40.00 a share, and its dividend is expected to grow at same constant rate, 0 . Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, whot is Ps?) Do not round intermediate calculatiahs, Rlound rair answer to the nearest cent: 5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Systems Assurance

Authors: David C Chan

2nd Edition

150081458X, 9781500814588

More Books

Students also viewed these Finance questions

Question

=+46. Monthly gas prices, part 3. Using the data from Exercise

Answered: 1 week ago

Question

What factors in Nooyis Five C model facilitate employee trust?

Answered: 1 week ago