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You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.75 a share at the end of the
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $2.75 a share at the end of the year ( D1=$2.75 ) and has a beta of 0.9 . The risk-free rate is 4.3%, and the market risk premium is 4.5%. Justus currently sells for $36.00 a share, and its expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end 3 years? (That is, what is P3 ?) Do not round intermediate calculations. Round your answer to the nearest cent
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