AviBank Plastics generated an EPS of $2.71 over the last 12 months. The company's earnings are expected to grow by 27.5% next year, and because there will be no significant change in the number of shares outstanding, EPS should grow at about the same rate. You feel the stock should trade at a P/E of around 31 times earnings. Use the P/E approach to set a value on this stock. Using the P/E approach, the value on this stock is $ (Round to the nearest cent.) Jack is considering a stock purchase. The stock pays a constant annual dividend of $3.31 per share and is currently trading at $21.69. Jack's required rate of return for this stock is 10.7%. Should he buy this stock? The intrinsic value of the stock that Jack is considering is $ (Round to the nearest cent.)