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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 5.5%, and the market risk premium is 4%. Justus currently sells for $34.00 a share, and its dividend is expected to grow at some canstant rate, 9 . Assuming the market is in equillorium, what does the market belleve will be the stock price at the end of 3 years ( That is what is P^37) Do not round intermediate calculations. Round your answer to the nearest ceet
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