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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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