Ace Frisbee Corporation produces a good that is in consolidation state in their product life cycles. Ace Frisbee Corporation is expected to pay a dividend in year 1 of $5.00, a dividend in year 2 of $5.50, and a dividend in year 3 of $6.00. After year 3, dividends are expected to grow at the rate of 5% per year. This company has a beta of 1.25. The risk-free rate of return is 3% and the expected return on the market portfolio is 12%. Using the multistage DDM, What is the required rate of return? What is the terminal value of the stock at end of year 3? What should be the price of the stock today?