FUNDAMENTALS OF FINANC/Excel Structured Activity: Constant growth (5Q), Stock and their Valuation (17Q)

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 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 spreadsheet and perform the required analysis.

SAMPLE ASSIGNMENT

Sample-2

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