1) A stock is expected to pay a dividend of $1.25 next year (one year from today) and is expected to increase the dividend at annual rate of 2%. The current risk free rate is 4% and the expected market return is 10%. The firm's asset beta is 0.8. The firm has book values of debt and equity 2 million and 1 million, respectively, while the market values of debt and equity are 2 million and 3 million, respectively. The firm's debt beta is currently 0.2. What should the current price of the stock be