A common stock offers dividend of $2 next period and its price is $30 next period. Suppose that the covariance of this stock and market is 24, market average return is 18% and market standard deviation is 4%, and the risk-free interest rate is 5%. What is proper discount rate for this stock? What is the value of this stock today?

Now assume that investors will hold this stock into the indefinite future. The growth rate of dividends is 8%. Stockholders desired discount rate is 15%. What is the implied fair price of this stock?