1. Vasudevan Inc. forecasts the dividend per share shown below. If the T-bond rate is 3.25%, firm beta is 1.15, the market risk premium is 11%, and the dividends are expected to continue growing at the same rate after Year 5 as from Year 3 to Year 4, what is the stock price today?

Year: 1 2 3 4 Dividend: 0 0 $4.2 $4.5