A stock is priced today at $12.59. Analysts have a consensus view that the stock will be valued at $15.55 next year. The stock will not pay a dividend in the coming year. After a little research, you know that the stock has a beta of 1.03. The risk free rate in the economy is 5.00%, while the market risk premium is 7.00%.

If CAPM and the analysts are correct, what price SHOULD the stock be trading at TODAY?

Based on your assumptions and research, should you buy the stock at $12.50? (YES OR NO).