Video Excel Online Structured Activity: Constant growth You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.00 a share at the end of the year (D - $2.00) and has a beta of 0.9. The risk-free rate is 5.6%, and the market risk premium is 5.0%. Justus currently sells for $32.00 a share, and its dividend is expected to grow at some constant rate, 9. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. Open spreadsheet 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 B7) Round your answer to two decimal places. Do not round your intermediate calculations. Check My Work Reset Problem = HTH Paste BI U Dab - Ch.A. NI Le Copy Format Painter Clipboard Alignment Font Undo B11 B C D NE $2.00 0.90 5.60% 5.00% $32.00 Yes Formulas #N/A Constant growth 2 3 Expected year-end dividend (D) 4 Beta coefficient 5 Risk-free rate (TRF 6 Market risk premium (RPM) 7 Current stock price (PD 8 Market in equilibrium 9 10 Calculate required return; 11 Required return on common stock 12 13 Calculate constant growth rate, g: 14 Total retum on common stock 15 Expected dividend yield 16 Expected capital gains yield 17 18 Calculate stock price in 3 years, P: 19 Number of years from today 20 Calculate P, using Po 21 22 Alternative calculation: 23 Calculate P, using dividends 24 #N/A #N/A #NIA 3 #N/A #N/A B Sheet1 + Calculation Mode: Automatic Workbook Statistics Page 1 of 27 263 words