Problem 4: Games R Us (GRU) paid a dividend of $4.00 (Do = $4.00). Analysts estimate that the dividend will grow at 18% per year for the next two years and then at a constant rate of 5%. GRU's stock has a beta of 1.2, the risk- free rate is 4.5% and the market risk premium is 6.0%. a. What is the required return on GRU's stock? b. What is the estimated current price of a share of GRU stock