You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $$1\mathrm{.}50$ a share at the end of the year $($D$1=$ $$1\mathrm{.}50)$ and has a beta of $0\mathrm{.}9.$ The risk$-$free rate is $5\mathrm{.}7\%,$ and the market risk premium is $4\mathrm{.}0\%.$ Justus currently sells for $$22\mathrm{.}00$ a share, and its dividend is expected to grow at some constant rate, g$.$ 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.Constant growth

Expected year$-$end dividend $($D$1)$ $$1\mathrm{.}50$

Beta coefficient $0\mathrm{.}90$

Risk$-$free rate $($rRF$)5\mathrm{.}70\%$

Market risk premium $($RPM$)4\mathrm{.}00\%$

Current stock price $($P$0)$ $$22\mathrm{.}00$

Market in equilibrium Yes

Calculate required return:

Required return on common stock $9\mathrm{.}30\%$

Calculate constant growth rate, g:

Total return on common stock $9\mathrm{.}30\%$

Expected dividend yield $6\mathrm{.}82\%$

Expected capital gains yield $2\mathrm{.}48\%$

Calculate stock price in $3$ years, P$3$:

Number of years from today $3$

Calculate P$3$ using P$0$

Alternative calculation:

Calculate P$3$ using dividends