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 5.0%, and the market risk premium is 4.5%. Justus currently sells for $45.00 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.

1) 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 isP3) Round your answer to two decimal places. Do not round your intermediate calculations.

A B C D Constant growth Expected year-end dividend (D,) $2.00 Beta coefficient 0.90 Risk-free rate (RF) 5.00% Market risk premium (RPM) 4.50% Current stock price (Po) $45.00 Market in equilibrium Yes Formulas Calculate required return: Required return on common stock #N/A Calculate constant growth rate, g: Total return on common stock #N/A Expected dividend yield #N/A Expected capital gains yield #N/A Calculate stock price in 3 years, P3: Number of years from today 3 Calculate P3 using Po #N/A Alternative calculation: Calculate P3 using dividends #N/A