Can you show the work/formulas

6 7 Jane's sister-in-law, a stockbroker at Invest, Inc., is trying to get Jane to buy the stock of 8 Health West, a regional HMO. The stock has a current market price of $25, its last dividend (DO) 9 was $2, and the company's earnings and dividends are expected to increase at a constant growth 10 rate of 10 percent. The required return on this stock is 20 percent. From a strict valuation 11 standpoint, should Jane buy the stock? 12 13 ANSWER 14 15 16 17 18 19 20 21