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 (D1$2.00) and has a beta of 0.9 . The risk-free rate is 3.1%, and the market risk premium is 4.0%. Justus currently sells for $38.00 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. 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 P3 ?) Round your answer to two decimal places. Do not round your intermediate calculations. Constant growth \begin{tabular}{l|r|} \hline Expected year-end dividend (D1) & $2.00 \\ \hline Beta coefficient & 0.90 \\ \hline Risk-free rate (rRF) & 3.10% \\ \hline Market risk premium (RPM) & 4.00% \\ \hline Current stock price (P0) & $38.00 \\ \hline Market in equilibrium & Yes \\ \hline \end{tabular} Calculate required retum: Required return on common stock Calculate constant growth rate, g : Total return on common stock Expected dividend yield Expected capital gains yield Calculate stock price in 3 years, P3 : Number of years from today 3 Calculate P3 using P0 Alternative calculation: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.75 coming 3 years from today. The dividend should grow rapidly - at a rate of 33% per year - during Years 4 and 5; but after Year 5, growth should be a constant 6% per year. 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 If the required return on Computech is 15%, what is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate calculations. Nonconstant growth P5 Cash flows to common stockholders 00 PV of cash flows to common stockholders Stock Price, P0 Alternatively, using Excel NPV function: Stock Price, P0 Formulas 16 Alternatively, using Excel NPV function: Stock Price, P0 Formulas Dividends P5 PV of cash flows to common stockholders Alternatively, using Excel NPV function: Stock Price, P0 \#N/A