3. Variable growth rates. XYZ Company recently paid a common stock dividend of $1.50 and the management predicts the following dividend growth rates: 7% for next four years, and then turns to 3% forever. The company has a beta of 0.8. The current risk free rate of interest is 4% and the market risk premium is 5%. What is the stock price? $35.71 (see lecture notes for details)