Question
In: Finance
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend...
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $1.50 a share at the end of the year (D1 = $1.50) and has a beta of 0.9. The risk-free rate is 5.5%, and the market risk premium is 4.5%. Justus currently sells for $41.00 a share, and its dividend is expected to grow at some constant rate, g. 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 ?) Do not round intermediate calculations. Round your answer to the nearest cent.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend...
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the year (D1 = $2.25) and has a beta of 0.9. The
risk-free rate is 5.9%, and the market risk premium is 4.5%. Justus
currently sells for $35.00 a share, and its dividend is expected to
grow at some constant rate, g. Assuming the market is in
equilibrium, what does the market believe will be the...
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend...
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the year (D1 = $2.75) and has a beta of 0.9. The
risk-free rate is 4.0%, and the market risk premium is 4.5%. Justus
currently sells for $42.00 a share, and its dividend is expected to
grow at some constant rate, g. Assuming the market is in
equilibrium, what does the market believe will be the...
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend...
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 5.1%, and the market risk premium is 6%. Justus
currently sells for $47.00 a share, and its dividend is expected to
grow at some constant rate, g. Assuming the market is in
equilibrium, what does the market believe will be the...
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend...
You are considering an investment in Justus Corporation's stock,
which is expected to pay a dividend of $3.00 a share at the end of
the year (D1 = $3.00) and has a beta of 0.9. The
risk-free rate is 4.5%, and the market risk premium is 5%. Justus
currently sells for $37.00 a share, and its dividend is expected to
grow at some constant rate, g. Assuming the market is in
equilibrium, what does the market believe will be the...
You are considering an investment in Justus Corporation's stock,which is expected to pay a dividend...
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 (D1 = $2.25) and has a beta of 0.9. The
risk-free rate is 4.7%, and the market risk premium is 4.5%. Justus
currently sells for $42.00 a share, and its dividend is expected to
grow at some constant rate, g. The data has been collected in the
Microsoft Excel Online file below. Open the...
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend...
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 (D1 = $2.25) and has a beta of 0.9. The
risk-free rate is 3.9%, and the market risk premium is 4.0%. Justus
currently sells for $45.00 a share, and its dividend is expected to
grow at some constant rate, g. The data has been collected in the
Microsoft Excel Online file below. Open the...
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend...
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which is expected to pay a dividend of $1.75 a share at the end of
the year (D1 = $1.75) and has a beta of 0.9. The
risk-free rate is 4.8%, and the market risk premium is 5.0%. Justus
currently sells for $28.00 a share, and its dividend is expected to
grow at some constant rate, g. The data has been collected in the
Microsoft Excel Online file below. Open the...
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend...
You are considering an investment in Justus Corporation's stock,
which is expected to pay a dividend of $3.00 a share at the end of
the year (D1 = $3.00) and has a beta of 0.9. The risk-free rate is
4.6%, and the market risk premium is 4.5%. Justus currently sells
for $44.00 a share, and its dividend is expected to grow at some
constant rate, g. Assuming the market is in equilibrium, what does
the market believe will be the...
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend...
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 (D1 = $2.25) and has a beta of 0.9. The
risk-free rate is 4.8%, and the market risk premium is 4.5%. Justus
currently sells for $40.00 a share, and its dividend is expected to
grow at some constant rate, g. Assuming the market is in
equilibrium, what does the market believe will be the...
Excel Online Structured Activity: Constant growth You are considering an investment in Justus Corporation's stock, which...
Excel Online Structured Activity: Constant growth
You are considering an investment in Justus Corporation's stock,
which is expected to pay a dividend of $1.75 a share at the end of
the year (D1 = $1.75) and has a beta of 0.9. The
risk-free rate is 5.3%, and the market risk premium is 4.5%. Justus
currently sells for $46.00 a share, and its dividend is expected to
grow at some constant rate, g. The data has been collected in the
Microsoft...
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