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You are considering an investment in Justus Corporation's stock,which is expected to pay a dividend of $2.25 a share at the end ofthe year (D1 = $2.25) and has a beta of 0.9. Therisk-free rate is 4.8%, and the market risk premium is 4.5%. Justuscurrently sells for $40.00 a share, and its dividend is expected togrow at some constant rate, g. Assuming the market is inequilibrium, what does the market believe will be the stock priceat the end of 3 years? (That is, what is ?) Round your answer totwo decimal places. Do not round your intermediatecalculations.
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