Alexandra Goldman recently took her company, Gemini Pulse Inc., public through an initial public offering (IPO). She is expanding the business quickly to take advantage of an otherwise unexploited market. Growth for her company is expected to be 40% for the first three years and then she expects it to slow down to a constant annual 15% thereafter forever. Gemini's most recent dividend per share (D0) was $0.75. Based on the most recent returns on pure play stocks, the company's beta is determined to equal 1.35. The market risk premium is 8.3% and the risk-free rate is 4.8%.

(a) Determine the current price for a share of Gemini Pulse Inc.

(b) Assume that you plan to buy a share of the Gemini stock today and to hold it for 3 years. Your expectations are that you will receive a dividend at the end of each of the next 3 years. If your expected annual rate of return does not change, how much should you be willing to sell the stock at the end of year 3?