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A company currently pays a dividend of $1.75 per share (D0 = $1.75). It is estimated that the companys dividend will grow at a rate

A company currently pays a dividend of $1.75 per share (D0 = $1.75). It is estimated that the companys dividend will grow at a rate of 25% per year for the next 3 years, and then at a constant rate of 5% thereafter. The companys stock has a beta of 1.5, the risk-free rate is 4.5%, and the market risk premium is 7.5%. What is your estimate of the stocks current price?

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