wants to get rid of her stock. She offers to sell it to her
friend. The stock will not pay dividend for the next 5
years. After year 5, the stock will pay a dividend of
$3, and dividend is expected to grow at 30% in year 6, 30% in year
7, and thereafter, the stock will grow at 5%. If the
risk free is 7%, the market risk premium is 8% and a beta of
1.25. What is the current stock
price?