9) Nonconstant Dividend Growth Valuation A company currently pays a dividend of $2 per share (D0=$2). It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years and then at a constant rate of 7% thereafter. The company's stock has a beta of 1.2, the risk-free rate is 7.5%, and the market risk premium is 4%. What is your estimate of the stock's current price? Answer 4 $50.50. You will get $50.53 if you carry out all decimal places in D3 and in calculating the horizon value