QUESTION 13 Ace Frisbee Corporation produces a good that is very mature in the firm's product life cycles. Ace Frisbee Corporation is expected to pay a dividend in year 1 of $3, a dividend in year 2 of $2, and a dividend in year 3 of $1. After year 3, dividends are expected to decline at the rate of 5% per year. This company's beta is 0.7, the market expected return is 18%, and the risk-free rate is 1%. We try to use the multistage DDM model to calculate the stock price, Using the multistage DDM, the stock Thus, the appropriate discount rate should be should be worth today. The discount rate is 13.9%. The stock price is $11.42. The discount rate is 13.9%. The stock price is $14.16. The discount rate is 12.9%. The stock price is $14.16. The discount rate is 12.9%. The stock price is $11.42