Crypto Cash is a new fintech in a rapidly growing industry. The company is planning on increasing its annual dividend by 19% per year for the next four years. Then at the beginning of Year 4, switching to a lower growth rate of 3% per year (in perpetuity). The company just paid its annual dividend in the amount of $3.30 per share. The companys Beta is 1.25. The risk-free rate is 5 percent per year and the return on the market portfolio is 9 percent per year.

A. What is the Required annual Rate of Return for this stock? (worth 2 points)

B. Draw the Cash Flow Diagram. Identify the Switch Point. (worth 2 points)

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C. What is todays price of the stock? (worth 4 points)

D. If the stock is currently selling for $110.00 in the market, would you recommend purchasing the stock today? (Yes or No). Explain why in 15 words or less. (worth 2 points)