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ABC Corp. plans to pay $1.80 in dividends next year. You believe the company grow dividends by 12% per year for the following 4 years,

ABC Corp. plans to pay $1.80 in dividends next year. You believe the company grow dividends by 12% per year for the following 4 years, after which dividends will grow at 6% per year. The beta for ABC Corp. is 1.15 and the market risk premium is 9%, with risk free rate of 2.5%.

What is ABC Corp's required rate of return ( Use the CAPM formula)?

What will be the price of AMZN today according to dividend discount model?

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