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12. Church Inc. is presently enjoying relatively high growth because of a surge in the...

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12. Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product Management expects earnings and dividends to grow at a rate of 40% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company's last dividend, Do, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock? $44.24

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