2. Calvin Inc. earned $2.00 per share during the past ycar and has just paid a dividend of s.40 per share. Investors forecast that Calvin will continue to rctain 80 percent of its earnings for the next 4 years and that carnings will grow at 25 percent per year through ycar 5. The dividend payout ratio is expected to be raised in year 5 to 50 percent, reducing the dividend growth rate to 8 percent thereafter. IfCalvin's equity is .9, the and the market risk premium is 8 percent, what should its price be today? riskfree ate is 2.5 percent