subject
Business, 18.08.2019 05:10 ProfS7160

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 3.2%, 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 stock price at the end of 3 years? (that is, what is ? ) round your answer to two decimal places. do not round your intermediate calculation

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 01:00
Azster inc. recorded sales revenue for the year that ended december 31, 2014 as $67,000. interest revenue of $5,300 and expenses of $14,000 were also recorded for the same period. what is aster’s net profit or loss?
Answers: 3
question
Business, 22.06.2019 01:50
Atlas manufacturing produces a unique valve, and has the capacity to produce 50,000 valves annually. currently atlas produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. what is the most likely behavior of total manufacturing costs and unit manufacturing costs given this change? a. total manufacturing costs will increase and unit manufacturing costs will also increase. b. total manufacturing costs will stay the same and unit manufacturing costs will stay the same. c. total manufacturing costs will increase and unit manufacturing costs will decrease. d. total manufacturing costs will increase and unit manufacturing costs will stay the same.
Answers: 1
question
Business, 22.06.2019 03:30
Used cars usually have options: higher depreciation rate than new cars lower financing costs than new cars lower insurance premiums than new cars lower maintenance costs than new cars
Answers: 1
question
Business, 22.06.2019 18:30
> > objectives define federalism and explain why the framers adopted a federal system instead of a unitary system. categorize powers delegated to and denied to the national government, and powers reserved for and denied to the states, and the difference between exclusive and concurrent powers.
Answers: 1
You know the right answer?
You are considering an investment in justus corporation's stock, which is expected to pay a dividend...
Questions
question
Mathematics, 10.03.2021 08:20
question
Mathematics, 10.03.2021 08:20
question
Mathematics, 10.03.2021 08:20
question
Geography, 10.03.2021 08:20
question
Physics, 10.03.2021 08:20
Questions on the website: 13722361