4. Your broker has advised you to buy shares of Hungry Boy Fast Foods, which has paid a dividend of $1.00 per year for 10 years and will (according to the broker) continue to do so for many years. The broker believes that the stock, which now has a price of $12, will be worth $25 per share in five years. You have good reason to think that the discount rate for this firm’s stock is 22% per year, because that rate compensates the buyer for all pertinent risks. Is the stock’s present price a good approximation of its true financial value?