Question: please solve correctly !! will rate You are considering an investment in Justus Corporation's stock, which is expected to pry a dividend of $2,75 a

please solve correctly !! will rate
please solve correctly !! will rate You are considering an investment in

You are considering an investment in Justus Corporation's stock, which is expected to pry a dividend of $2,75 a share at the end of the yesr (D2=32.75) and has a beta of 0,9.7. The risk-free rate is 3.3%, and the market risk premlum is 4%. Justus currently selis for $40.00 a share, and its dividend is expected to grow at same constant rate, 0 . Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, whot is Ps?) Do not round intermediate calculatiahs, Rlound rair answer to the nearest cent: 5

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!