A company has a current dividend of $4, which is expected to grow at a constant rate each year at 4% per year for the foreseeable future. The beta for the company is 1.85, and the current risk free rate is 6%. Estimates for the S&P 500 are that it will return 15% next year. Given this information:

What is your estimate of the required return for this stock?

What is your estimate of the value for this stock?