Assume it is January $1,2024.$ Cummins, Inc. $($CMI$),$ the diesel and natural gas engine manufacturer, is currently

selling for $$286.$ Dividends for $2024$ are expected to be $$6\mathrm{.}72$ per share. We believe that dividends in $2025$ will be

$$7\mathrm{.}00$ and dividends in $2026$ will be $$7\mathrm{.}24.$ At the end of $2026,$ The Value Line predicts the price to be from $$290$

to $$390$ per share. Let$$s use $$300.$ Our required rate of return is $8\%.$ Using the Discounted Cash Flow stock

valuation model $($Value of stock $=$ present value of future dividends $+$ present value of price of stock when you plan to sell$),$

calculate the stock valuation. Should we consider buying Cummins?