TI currently does not pay any dividend. Analyst expect that the economy will start paying dividends four years from now. The first dividend is expected to be $1 per share. The dividend will grow at a constant rate of 5% after that. The risk free rate is 2% and the market risk premium is 4%. The equity beta of the company is 2. At present the stock is trading at $20 per share. Is the stock correctly priced?

Please include formulas and calculations.