Zyale company is going to invest in a new piece of equipment that costs $45,000. The equipment'sdepreciation rates are 33%, 45%, 15%, and 7% for Years 1 through 4. Sales revenues will be $30,000 eachyear, and operating costs will be $7,500. If the tax rate is 30%, what is the Year 1 cash flow?

Zyale company is expected to pay a dividend of D1 = $2.20 per share at the end of the year, and that dividend is expected to grow at a constant rate of 7.50% per year in the future. The company's beta is 1.3, the market risk premium is 9.50%, and the risk-free rate is 1.00%. What is the company's current stock price?