It has been a little while since I did these type of questions... so hopefully I haven't done anything incorrectly.

1- by the CAPM, the discount rate for the company is

or

Given that the company receives a current divdend of $2, the dividend in year 1 will be $2.40 which gets discounted 1 year, and $2.88 in year 2 which gets discounted 2. In year three, the dividend grows by 7% and grows indefinitly at this rate. Using the PV of a perputiuty formula will discount these future cash flows into year 2, so they then need to be discounted back a further 2 years to get the PV.

So the current share price is equal to the discounted value of these cashflows;

edit: i made a mistake when i discounted the PV of the growing dividends... Something doesn't look right now?