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16. You are considering an investment in the common stock of keller corp. The stock 3 is expected to pay a dividend of $2 a
16. You are considering an investment in the common stock of keller corp. The stock 3 is expected to pay a dividend of $2 a share at the end of the year. The stock has beta equal to .9. The risk free rate is 6% and market return is 11%. The stock's dividend is expected to grow at some constant rate,g. The stock currently sells for $25 a share. Assuming that market is in equilibrium, what does the market believe will be the stock price at the end of 4 years? What is the value of stock today
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