The stock has a beta of 1.2.

The risk free tate is 2% and the market risk premium is 7%. The standard deviation of the market is 25%.

The firm just paid dividends of 2.50 $ per share . Assume that the firm lays dividends annually and that the firm adjusts its dividends to maintain constant divident payout ratio of 75%. The ROE of the firm is 15%.

What should be the price of this stock?

What is the cash cow value and what is the present value of growth opportunity?