#8) Tamarisk Financial Ltd. is interested in investing in Scion Systems Inc. Scions current dividend is $5.75 and its shares are selling for $40. The required rate of return for firms like Scion is 8 percent. Tamarisk has conducted an extensive analysis of the company and believes that the dividend growth rate should be 5 percent.

Price of the stock should be (Round answer to 2 decimal places, e.g. 105.25.) = Should Tamarisk buy the stock at $40?