You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $1.75 a share at the end of the year (D = $1.75) and has a beta of 0.9. The risk-free rate is 3.7%, and the market risk premium is 4.0%. 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. 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. $

You are considering an Investment in Justus Corporation's stock, which is expected to pay a dividend of $1.75 a share at the end of the year (D1=$1.75) and has a beta of 0.9 . The risk-free rate is 3.7%, and the market risk premium is 4.0%, 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. 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 P^3 ?) Round your answer to two decimal places, Do not round your intermediate calculations. s. \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & A & B & C & D & E & F & G \\ \hline 1 & Constant growth & & & & & & \\ \hline 2 & & & & & & & \\ \hline 3 & Expected year-end dividend (D1) & $1.75 & & & & & \\ \hline 4 & Beta coefficient & 0.90 & & & & & \\ \hline 5 & Risk-free rate ( rRE) & 3.70% & & & & * & \\ \hline 6 & Market risk premium (RPM) & 4.00% & & & & : & \\ \hline 7 & Current stock price (P0) & $45.00 & & & & & \\ \hline 8 & Market in equilibrium & Yes & & & & & \\ \hline 9 & & & & Formulas & & & \\ \hline 10 & Calculate required return: & & & & & & \\ \hline 11 & |Required retum on common stock & & & HNA & & & \\ \hline 12 & & & & & & & \\ \hline 13 & Calculate constant growth rate, g : & & & & & & \\ \hline 14 & Total return on common stock & & & HN/A & & & \\ \hline 15 & Expected dividend yiold & & & \begin{tabular}{l} HN/A \\ HN/A \end{tabular} & & & \\ \hline 16 & Expocted capital gains yield & & & & & & \\ \hline \begin{tabular}{l} 17 \\ 18 \end{tabular} & Calculate stock price in 3 years, P3 : & & & & & & \\ \hline \begin{tabular}{l} 18 \\ 19 \end{tabular} & \begin{tabular}{l} Calculate stock price in 3 years, P3 : \\ Number of years from today \end{tabular} & 3 & & & & & \\ \hline 20 & Calculate P3 using P0 & & & HN/A & & & \\ \hline 21 & & & & & & & \\ \hline 22 & Altemative calculation: & & & & & & \\ \hline \begin{tabular}{l} 23 \\ 24 \end{tabular} & Calculate P1 using dividends & & & HN/A & & & \\ \hline \end{tabular}