Question 1 (3 points) A financial analyst has been following Fast Start Inc., a new high-growth company. She estimates that the current risk-free rate is 6.25 percent, the market risk premium is 6.25 percent, and that Fast Start's beta is 1.75. The current earnings per share (EPSO) is $2.50. The company has a 40 percent payout ratio. The analyst estimates that the company's dividend will grow at a rate of 15 percent for the next three years (Years 1 to 3). After three years the dividend is expected to grow at a constant rate of 7 percent a year. The company is expected to maintain its current payout ratio. The analyst believes that the stock is fairly priced. What is the current price of the stock? $13.50 $14.97 $16.93 $15.97