A company currently pays a dividend of $2 per share (D0 = $2).It is estimated th

A company currently pays a dividend of $2 per share (D0 = $2).It is estimated that the companys dividend will grow at a rate of20% per year for the next 2 years then at a constant rate of 7%thereafter. The companys stock has a beta of 1.2 the risk-freerate is 7.5% and the market risk premium is 4%. What is yourestimate of the stocks current price? (Brigham 297)