The Giraffe Corporation pays dividends on an annual frequency. One year from now the firm will pay its next dividend, which market analysts expect to be $10. The analysts expect that the dividend will grow at g1 = 20% for 3 years, after which it will grow at g 2 = 3% in perpetuity. The market capitalization rate for the firm is 6% - what is the current stock price? 2. The market expects the dividends paid by Company X to grow at a constant rate equal to g. The current ex-dividend price of the stock is $40. The value of the first dividend to be paid next period is $1.20 and the discount rate is 5%. What is the growth rate, g, of the stock?