booiat no equbnm price can be produced. 6. A stock, which currently does not pay a dividend, is expected to pay its first dividend of $1.00 per share in five years (D5 $1.00). After the dividend is established, it is expected to grow at an annual rate of 25 percent per year for the following three years (D8 = $1.953125) and then grow at a constant rate of 5 percent per year thereafter. Assume that the risk-free rate is 5.5 percent, the market risk premium is 4 percent, and that the stock's beta is 1.2. What is the expected price of the stock today? $20.65