Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please solve will rate You are considering an imvestment in Justus Corporation's stock, which is expected to poy a dividend of $1.50 a share ot
please solve will rate
You are considering an imvestment in Justus Corporation's stock, which is expected to poy a dividend of $1.50 a share ot the end of the year (D1=51.50) and has a beta of 0.9 . The risk-free rate is 3.3%, and the market risk premium is 6%. Justus currentiy sells for $39.00 a share, and its dividend is expected to grow at some constant rate, a. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is Ps?) Do not round intermedsate calculatians. Round your answer to the nearest cent. 5 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started