20. A stock with beta of 1.2 will pay a dividend of $6 next year, $7 in year 2,$8 in year 3 , and $9 in year 4. An analyst believes that dividends will then grow at a constant rate of 2% forever. If the expected market return is 9% and risk-free rate is 2%, then the stock should be sold at $ a. 136.53 b. 120.32 c. 113.21 d. 106.41 e. 96.75 21. The market price of the stock is $1200 and it just paid a dividend of $5. Given that the currently estimated required rate of return is 15%, what is the growth rate of the dividend? a. 13.663% b. 14.583% c. 15.223% d. 16.555% e. 17.123%