George Johnson is preparing a valuation of Logistic Solutions, Inc. George has decided to use a two-stage DDM model and the following estimates. The Dividend per share is $1.75 for the current year and expected to grow at 16 percent annually for the first five years, and 7 percent afterwards, indefinitely. Logistic Solutions estimated beta is 1.5, and George believes that the current market conditions dictate a 3.5 percent risk free rate of return and a 5.0 percent market risk premium.