The Yempy Corp. is recently paid a dividend of $2. The dividends are expected to grow at 20% for next 4 years due to technological advanced and thereafter, the growth rate settles down to 2% for ever....

Extracted text: The Yempy Corp. is recently paid a dividend of $2. The dividends are expected to grow at 20% for next 4 years due to technological advanced and thereafter, the growth rate settles down to 2% for ever. The risk-free rate is 2.2% and the market risk premium is 6%. If the beta of the stock is 1.3, what must be the current selling price of the company's stock? Calculate the current selling price of the stock. (A) The current selling price of the stock is $31.05 (B) The current selling price of the stock is $25.08 (C) The current selling price of the stock is $35.07 (D) The current selling price of the stock is $36.72