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A stock has the following data: o Current cash flow per share: $ 10 o Growth rate for the next three years: 30% o Long term growth rate after 3 years: 5% o It pays a dividend 20% of cash flow every year

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A stock has the following data:

o Current cash flow per share: $ 10

o Growth rate for the next three years: 30%

o Long term growth rate after 3 years: 5%

o It pays a dividend 20% of cash flow every year.

o The current risk free rate= 1.62%; Return of the market = 15%

o The stock's beta = 1.5

Using the above data and CAPM to calculate its stock price.