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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 6.0%, and the market risk prenlum is 5%. Justus currently selts for $35.00 a share, and its dividend is expected to orow at some constant rate, 0 . Assuming the market is in equilibrium, what does the market believe wil be the stock price at the end of 3 years? (That is, what is P^3 ) Do not round intermedlate calculations. Round vour answer to the nearest cent. \$
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