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You are considering an investment in Justus Corporation's stock, which is expected to pay a...

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Finance

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 6.0%, and the market risk premium is 5%. Justus currently sells for $50.00 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

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