Question: signment: Module 4 Homework Assignment Score: 65.00% Save Submit Assignment for Grading sestions Problem 9.13 (Constant Growth) Question 16 of 20 > Check My Work

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signment: Module 4 Homework Assignment Score: 65.00% Save Submit Assignment for Grading sestions Problem 9.13 (Constant Growth) Question 16 of 20 > Check My Work (3 remaining) . cBook Problem Walk-Through You are connidering an investment in Sustus Corporation's stock, which is expected to pay a dividend of $1.50 a share at the end of the year (D. = $1.50) and has a bete of 0.9. The nsk free rate is 3.1%, and the market risk premium is 5.5% Justus currently sells for $48.00 a share, and its dividend is expected to grow at some constant rate, 9. 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 Ba?) Do not round intermediate calculations. Round your answer to the nearest cont. 5

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