Considering an investment in keller corporation stocks

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Reference no: EM131550981

You are considering an investment in Keller Corporation’s stocks, which is expected to pay a dividend of $2.00 a share at the end of the year and has a beta of 0.9. The risk-free rate is 5.6%, and the market risk premium is 6%. Keller currently sells for $25.00 a share, and its dividend is expected to grow at some constant rate, g. Figure out the value of g, assuming the market is in equilibrium. (Please Show Work)

Reference no: EM131550981

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