A company currently pays a dividend of $2 per share. It is estimated that the companys 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 companys 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 stocks current price?

I figured out that rs=12.3%

D1=2.4

d2= 2.88

D3=3.0816

P hat 3= 58.14

I plug it into the calculator. CO=0, C1= 2.4 C2= 2,88 C3= 61.02 I=12.3 and compute for NPV and I get $47.50.. The answer is $50.5 Where am I going wrong?