" ABC " Company stock is not expected to pay any amount of dividend over the upcoming four years . However , in year 5 the company anticipates that it will establish a dividend of $ 1.00 per share , and once " ABC " Company establishes that dividend the market expects that the dividend will grow at a constant rate of 5 % per year forever . The risk - free rate is 5 % , the company's beta is 1.2 and the market risk premium is 5 % . If The required rate of return on the company's stock is expected to remain constant. What is the current ( Today or TO ) stock price ?