you are considdering an investment in justus corporatiuon which is expected to pay a divident of $2.25 a share at the end of the year (D1=$2.25) and his a beta of 0.9 . the risk free rate is 4.9 and the market risk primum is 5% .justus currently sells $46.00 a share its divdent is expexted to grow at some constant rate g, assuming the market is in equilibrium , what does the market belive will be the stock price at the end of 3 year ?(that is what is p3?)
you are considdering an investment in justus corporatiuon which is expected to pay a divident of $2.25 a share at the end of the year (D1=$2.25) and his a beta of 0.9 . the risk free rate is 4.9 and the market risk primum is 5% .justus currently sells $46.00 a share its divdent is expexted to grow at some constant rate g, assuming the market is in equilibrium , what does the market belive will be the stock price at the end of 3 year ?(that is what is p3?)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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you are considdering an investment in justus corporatiuon which is expected to pay a divident of $2.25 a share at the end of the year (D1=$2.25) and his a beta of 0.9 . the risk free rate is 4.9 and the market risk primum is 5% .justus currently sells $46.00 a share its divdent is expexted to grow at some constant rate g, assuming the market is in equilibrium , what does the market belive will be the stock price at the end of 3 year ?(that is what is p3?)
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