Bostin Industries is expected to pay a dividend of $1 per share this year. Their current stock price is $40 per share. If investors expect Olins dividend to grow at a constant rate of 3.5%, what must be Olins equity beta? Assume the risk-free rate is 2% and the market risk premium is 5%.

alternatively

Bostin Technologies, Inc.(OTI) is expected to start paying a dividend two years from now. Investors expect the dividend to start at $1 per share in year 2, increase to $2 per share in year 3, and grow at an annual rate of 3% perpetually after year 3. OTIs equity beta is 1.2. If the risk-free rate is 1% and we assume a market risk premium of 5%, the current price per share of OTIs stock should be $_________ (round to the nearest penny)