Apple just paid a $5 dividend to its shareholders and its share has a current market price of $118. Apple is forecasting to grow its dividend respectively by 20% and 15% in the next two years. Thereafter, the company is expected to grow at a constant rate of 5%.

Your client has a required rate of return of 8%. Considering your valuation and the current market price, would you advise to buy the stock? Explain why.