An analyst is reviewing the valuation of AFX as of the beginning of 2022 when AFX is selling for $60. In the previous year, AFX paid a $1.6 dividend that the analyst expects to grow at a rate of 4% annually for the next three years. At the end of Year 3, the analyst expects the dividend to equal 35% of earnings per share and the P/E for AFX to be 15. The required return on AFX common stock is 9%.

a. What is the price of the stock at the end of year 3?

b. what is stock value?

c. What investment recommendation the analyst will give?