Excel Online Structured Activity: Constant growth 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 of the year (D. - $2.25) and has a beta of 0.9. The risk-free rate is 5.8%, 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, 9. 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?) Round your answer to two decimal places. Do not round your intermediate calculations, $ Check My Work Reset Problem A B c D E Constant growth 1 Expected year-end dividend (D) Beta coefficient Risk-free rate (TR) 5 Market risk premium (RPM) Current stock price Po) 8 Market in equilibrium LO Calculate required retum. 11 Required return on common stock $2 25 0.90 5.80% 4.50% $45.00 Yes Formulas WNIA 12 13 14 Calculate constant growth rate, g Total return on common stock Expected dividend yield Expected capital gains yield 15 #NIA MNIA #N/A 16 17 Calculate stock price in 3 years, F Number of years from today Calculate P, using Po 3 WNIA 18 19 20 21 22 23 24 25 26 27 Altemative calculation Calculate P, using dividends WNIA 28