Valuation rate of return? Pf8-5 A company currently pays a dividend of $2 per share, D = $2. It is estimated that the com- Nonconstant Growth pany's dividend will grow at a rate of 14% per year for the next 2 years, then the dividend Valuation will grow at a constant rate of 7% thereafter. The company's stock has a beta equal to 1.8. the risk-free rate is 4.5%, and the market risk premium is 4%. What is your estimate of the stock's current price? (8-6 A stock's most recent dividend was $1.80. The dividend is expected to grow by 6% and Constant Growth investors require an 11% return for holding the shares